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Retail

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
  • Lease Premiums
  • 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 ExpenditureLevel of Qualifying Expenditure
Acquisition of second hand property (unrestricted)20% - 35%
Acquisition of second hand property (restricted)2% - 10%
New Build - Landlord25% - 40%
Fit Out - Tenant30% - 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 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

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
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
Retail
£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.
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

"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

Expert industry insight

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