Capital allowances on Industrial properties are available to both Landlords and Tenants and can be claimed on the following types of expenditure;
Acquisition of second hand property
Acquisition from Developer
New build expenditure including refurbishments and fit outs
Contributions paid towards tenant fit out expenditure
Industrial, Logistics and Warehouse properties often include trade specific assets which can be claimed in addition to the standard items of plant and machinery. For example, assets used to protect the building from vehicles. Renewables and Freeports may attract further additional trade specific items.
How much can be claimed?
The level of capital allowances will depend upon the nature of expenditure and level of specification however typical benchmarks are as follows;
Type of Expenditure
Level of Qualifying Expenditure
Acquisition of second hand property (unrestricted)
10% - 25%
Acquisition of second hand property (restricted)
2% - 10%
New Build - Landlord
15% - 30%
Fit Out - Tenant
20% - 50%
How we can help?
Provide early advice at heads of terms to ensure the Buyer's position is protected, including liaising with the legal and transaction teams to provide appropriate wording within the heads of terms and purchase contract
Carry out initial review and due diligence to conclude entitlement and restrictions in accordance with the Capital Allowances Act 2001
Liaise with Developer to obtain relevant project/cost information for Structures and Buildings Allowances purposes
Survey and prepare fully disclosed capital allowances reports for submission to HMRC
Liaise with client accountant and tax advisors throughout process
New Build Expenditure
Provide early advice to project team including tender wording and capital allowances strategic and planning advice
Survey and prepare fully disclosed capital allowances reports including identifying repairs, plant and machinery allowances, Structures and Buildings Allowances and Land Remediation Expenditure
Provide advice to both Landlord and Tenants regarding capital contributions paid and received in respect of tenant fit out expenditure
Liaise with client accountant and tax advisors to ensure the capital allowances identified reconcile to the client accounts
£10m Corporate acquisition by owner/occupier of existing specialist Manufacturing facility. Carried out detailed review of existing capital allowances claimed. Used quantity surveying assessments to extract qualifying expenditure. Identified £1.8m of additional unclaimed capital allowances.
£13m Logistics warehouse constructed by nationwide developer. Applied quantity surveying assessments based upon detailed survey and review of project information. Identified £3m (23%) of plant and machinery allowances, £0.5m of qualifying Land Remediation Expenditure and £9.5m of Structures and Buildings Allowances.
"Colne Capital Allowances provided us with a professional strategic approach to capital allowances and a personal service, helping us make significant tax savings"
Paul Crosbie, Fund Manager, M&G
"Colne Capital Allowances have worked across a number of our property funds and across all asset classes for over 17 years. Their proactive approach throughout our property fund cycle has ensured that our funds claim all the tax savings which they are entitled to. They consistently deliver a high quality service combined with a personable […]
Chris Warren, Managing Director - Fund Services, Patrizia
"David has always been very responsive and produced excellent quality reports that have enabled clients to claim all allowances they are due. A pleasure to work with."
Andrew Noton, Partner - Lubbock Fine
"Colne Capital Allowances made dealing with our capital allowances as simple and professional as can be. The process was seamless and the results outstanding."
David Butcher, Upham Pub Group
"Colne Capital Allowances will always tell us up front if there is a case to be pursued. We find their charges very acceptable, and the success rate on our cases has been 100%. First rate service."
Martin Waller, Investra Capital & Pelham Associates
"I've worked with David over many years, recommending his invaluable service to many others too. The relationship gives me peace of mind, support in abundance and a 'can do' attitude that makes light work of the tasks"
Gill Kreft, Pendine Park Care Organisation
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