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Capital allowances on offices 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, Cat A and Cat B fit outs
  • Lease Premiums
  • Contributions paid towards tenant fit out expenditure

Offices can often include complicated services installations which means that it is essential to understand how the services function and are incorporated within the building.  For example, sometimes elements of the building fabric are incorporated within the Heating, Ventilation and Air Conditioning Installations such as the façade, ceiling and raised access floor.

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% - 40%
Acquisition of second hand property (restricted)3% - 15%
New Build30% - 50%
Cat A fit out30% - 65%
Cat B fit out60% - 85%

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
  • 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

Office Development
£15m high specification office development by property fund. Provided early pre-tender advice and applied quantity surveying assessments to extract qualifying expenditure. Identified additional capital allowances of £6.5m (43%).
Read more
Co-Working Fit Out
£15m Office co-working specialist fit out by owner occupier Carried out detailed review of project cost and specification information and liaised with client accountant. £12.3m (82%) of capital allowances identified.
Read more
Office Acquisition
£200m acquisition by property fund. Capital Allowances restricted by historical capital allowances election Carried out detailed survey of property and identified unusual qualifying expenditure which is often missed. Claimed additional capital allowances of £30m (15%).
Read more
Landlord Capital Contribution
£6m Capital Contribution paid towards tenant office fit out project. Provided early advice to landlord regarding specific wording within Agreement for Lease. Landlord was able to claim capital allowances on 100% of the contribution paid.
Read more
Office Fit Out
£20m CAT A fit out and refurbishment. Provided pre-tender advice to project team to help maximise capital allowances position for the landlord. Detailed capital allowances survey confirmed that raised access floor and suspended ceiling £16m (80%) Capital Allowances identified.
Read more
Historical Review
Carried out historical capital allowances review of 40 acquisitions made over a 30 year period for High Net Worth Individual. Forensic research of documentation with minimal client disruption. Client received in an instant tax refund from the tax authorities of £500,000 plus additional future tax savings of £4m.
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

David and the team are very efficient, proactive and always available to assist
Ines Ramirez, Finance Director, Pontegadea
Any apprehension of switching business to Colne were quickly put aside with David's personal and fresh approach to the world of capital allowances.
Hitesh Patel, Group Financial Controller, Barwood Capital
"Colne Capital Allowances provided us with a professional strategic approach"
Paul Crosbie, Fund Manager, M&G
'They consistently deliver a high quality service combined with a personable and professional approach'
Chris Warren, Managing Director - Fund Services, Patrizia
I have always been impressed by their attention to detail, understanding of complex tax legislation and willingness to help
William Munden, Head of Finance, LBS Properties
Their client service is exceptional, always very reactive and responsive
James Deane, Finance Director, Chancerygate
David and his team are efficient and highly responsive
Martin Bramhill, Group Tax Manager, Helical
David has enabled clients to claim all capital allowances they are due
Andrew Noton, Partner - Lubbock Fine
they continue to impress with their professionalism, expertise and timeliness
Michael Hughes, Managing Director - Whirledge & Nott
"The process was seamless and the results outstanding."
David Butcher, Upham Pub Group
"We find their charges very acceptable, and the success rate on our cases has been 100%"
Martin Waller, Investra Capital & Pelham Associates
The relationship gives me peace of mind, support in abundance and a 'can do' attitude
Gill Kreft, Pendine Park Care Organisation

Expert industry insight

Budget 2023 (15th March 2023)
Full Expensing and 50% FYA
Read more
Mini-Budget 'The Growth Plan 2022'
Capital Allowances Changes - Growth Plan 2022
Read more
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

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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20-22 Wenlock Road
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