Businesses across a range of sectors could be missing out on substantial tax relief by failing to review the capital allowances available within their commercial properties.
Eureka Capital Allowances is urging business owners, property investors and accountants to take a closer look at the hidden value sitting within their buildings, particularly where properties have been purchased, developed, extended, refurbished or fitted out.
Capital allowances are a form of tax relief available on qualifying items within a commercial property. These can include embedded fixtures and integral features which were already in the property, or newly added items such as electrical systems, heating, lighting, plumbing, air conditioning, fire alarms, kitchens, bathrooms, lifts, security systems and other qualifying assets.
While many accountants will claim obvious items such as furniture, equipment and loose assets, the more complex embedded fixtures within the fabric of the building are often missed, the firm said. These are not always visible on invoices or fixed asset registers, and usually require specialist surveyor led analysis to identify, value and claim correctly.
Jason Batty, founder of Eureka Capital Allowances, said:
“Many business owners assume their accountant has claimed everything available, but in reality accountants can only claim what they are aware of. Embedded fixtures and integral features within a building often require a specialist capital allowances survey and detailed tax report.
“We regularly speak to owners who have held commercial property for years and had no idea there were tens or even hundreds of thousands of pounds in unclaimed allowances available. In many cases, this can reduce future tax bills, improve cash flow or even unlock a tax repayment.”
Eureka works across a broad range of sectors including holiday lets, holiday parks, care homes, petrol stations, hotels, pubs, restaurants, supported living, offices, warehouses, retail premises and other commercial property.
The firm works alongside accountants, providing the technical analysis, survey work and HMRC compliant reports required to support a claim. The accountant can then use the report to include the allowances within the client's tax position.
It said the approach has helped business owners across the UK secure significant tax savings, including:
- A Welsh care home development where Eureka identified substantial qualifying expenditure within the building, helping the owners unlock significant tax relief.
- Holiday let owners who had never claimed on the embedded fixtures within their properties, with some seeing tax savings worth tens of thousands of pounds.
- A Welsh petrol station purchased over 20 years ago where qualifying fixtures such as forecourt infrastructure, electrical systems, heating, lighting and specialist installations created valuable capital allowances claims.
- Holiday park operators who had assumed their accountants had claimed everything, only to discover major allowances had never been identified.
For many businesses, the benefit is not just historical. Once allowances are identified, they can often be carried forward and used to reduce taxable profits over time. This can be particularly valuable for growing businesses, property investors and owners facing higher tax bills.
The opportunity can also be relevant where a business has undertaken significant refurbishment, conversion or development works. It is especially important where a property has been purchased from a council, charity, private individual or another seller who may not have previously claimed capital allowances.
