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Leisure

Capital allowances on Leisure 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 tenant fit outs
  • Lease Premiums
  • Contributions paid towards tenant fit out expenditure

Common types of qualifying leisure property include; Hotels, Restaurants, Pubs, Cinema, Bowling Alleys and Gyms.

Leisure properties often include trade specific assets which can be claimed in addition to the standard items of plant and machinery. For example, decorative assets used to attract customers into the leisure space.

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 ExpenditureLevel of Qualifying Expenditure
Acquisition of second hand property (unrestricted)20% - 35%
Acquisition of second hand property (restricted)2% - 10%
New Build - Landlord25% - 45%
Fit Out - Tenant 40% - 80%

How we can help?

Acquisitions

  • Provide early advice at heads of terms to ensure the Buyers 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 Sellers to obtain relevant historical project/cost information for Structures and Buildings Allowances purposes
  • Obtain details of historical contribution allowances claimed
  • 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

Related Case Studies

Hotel Acquisition - Pooling Claim
Pooling claim prepared for £5m Turnkey hotel development on behalf of Property Fund. Early pre-acquisition advice provided to ensure 'Pooling Wording' is included within purchase contract to protect Buyers position. Liaised with Sellers project, finance and legal team. Prepared pooling claim for £2.6m (52%) and associated CAA 2001 s198 election to pass 100% of benefit […]
Read more
Pub Group
Acquisition and fit out of 15 Pubs for £20m by Pub Group. Capital Allowances restricted by historical capital allowances elections. Provided pre-acquisition advice, carried out detailed survey of each property and project to identify qualifying decorative expenditure which is often missed. Claimed additional capital allowances of £6m (30%).
Read more
Restaurant Fit Out
£9.1m High specification restaurant fit out by owner occupier. Early involvement to understand extent of qualifying building alterations and trade specific decorative assets. £8.5m (93%) of plant and machinery allowances and £0.6m of Structures and Buildings Allowances (SBA's).
Read more
Hotel Refurbishment
£38m High Specification Hotel refurbishment for owner occupier. Early pre-contract advice provided to ensure correct level of cost information is provided on multiple construction packages. Detailed capital allowances survey undertaken to identify qualifying decorative assets. Combined quantity surveying and tax expertise identified £34m (89%) of Plant and Machinery Allowances plus £4m of Structures and Buildings […]
Read more
Pub Acquisition and Redevelopment
£4m Pub acquisition and Redevelopment to high specification. Report required within two weeks of instruction. Liaised directly with client project team, carried out detailed capital allowances survey to assist with quantity surveying assessments. Claimed additional capital allowances of £2.2m (55%).
Read more

Our services

Preparation of capital allowances reports
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.

What our clients say

"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
"Whirledge & Nott have been repeatedly recommending Colne Capital Allowances to our clients for over ten years and they continue to impress with their professionalism, expertise and timeliness"
Michael Hughes, Managing Director - Whirledge & Nott
"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

Expert industry insight

Budget 2021 (27th October)Annual Investment Allowance (AIA) – Extension of £1m AIA- 31st March 2023
Is 2021/2022 the best time to carry out qualifying expenditure
Read more
Super-deduction Good News!
Potential good news for Landlords as leasing restriction may be amended.
Read more
New Changes - Budget 2021 (3rd March)
Exciting new changes to the capital allowances regime
Read more

Get in touch

If you would like to discuss our services in more detail or would be interested in a free initial review please contact us
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