A brief overview and example of embedded capital allowances, from our sister brand ClaimCapitalAllowances.com
Embedded capital allowances is a tax relief claimed against the features, fixtures and fittings in property.
Most company accountants typically miss the value of capital allowances when it comes to commercial property, so it is an area of significantly untapped tax benefit.
Embedded capital allowances can be claimed by owners of commercial properties, whether they’re owned by a company or an individual.
Commercial properties are typically anything non-domestic, however hotels, holiday lets and dwellings which are used for business purposes can be claimed for.
An example embedded capital allowances claim:
Property price – £1m
Identifiable embedded capital allowances value – 40% of price
Tax relief – 19%
Total tax relief £76k
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