Capital allowances on Retail 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
Common types of qualifying retail property include; High Street Retail, Retail Warehouse, Shopping Centres, Tenant Fit Out and Car Showrooms.
Retail 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 in the retail space and ram raid protection.
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)
20% - 35%
Acquisition of second hand property (restricted)
2% - 10%
New Build - Landlord
25% - 40%
Fit Out - Tenant
30% - 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 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
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%).
£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%).
£3m of Store fit out expenditure incurred across 7 shops, minimal cost information available. Carried out survey and applied quantity surveying assessments and caselaw to extract qualifying expenditure. Identified £2.55m (85%) of trade specific qualifying expenditure and set up capital allowances system to capture future expenditure.
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.
"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