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
Lease Premiums
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?
Acquisitions
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.
We prepare fully disclosed capital allowances reports for both property acquisitions and enhancement projects.
Strategic advice
We provide strategic advice throughout the property cycle including s198 elections, contributions and land remediation relief.
Due diligence
We liaise with the client and their advisors to ensure that the capital allowances position is protected during the acquisition, disposal and leasing of property.
Initial reviews
We offer a free initial review to establish if a capital allowances opportunity exists. This review is carried out with minimal time and disruption to the client.
Negotiation with the tax authorities
We apply an enquiry mitigation strategy to all of our client work. Our experience and extensive knowledge of tax legislation and case law enables us to assist with potential HMRC enquiries.
