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Tax and finance · Tax explainer

Capital Allowances for Commercial Property

How capital allowances work on commercial property, and the value routinely left unclaimed.

By Chris G Jones · · 3 min read

The basics

Capital allowances let businesses claim tax relief on qualifying capital expenditure, including certain fixtures within commercial property.

General information only — not tax advice. Your position depends on ownership, expenditure and how previous claims were handled.

Where value gets missed

Property transactions are where this usually goes wrong.

  • Fixtures within a purchased building never identified
  • Refurbishment expenditure treated as pure repair
  • No specialist survey at the point of purchase
  • Prior owner elections not reviewed

Getting it reviewed

Identifying qualifying fixtures usually needs a surveyor as well as a tax specialist, which is why it sits outside most general practices.

Reclaim Tax UK reviews capital allowances alongside other UK reliefs. Whether anything is available depends entirely on your circumstances.