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Unclaimed Capital Allowances on Plant and Machinery

Some Gullands clients may have unclaimed capital allowances on plant and machinery that are hidden and inherent within the fabric of commercial property.

If you pay UK personal or corporation tax, own a commercial property and paid at least £200,000 for it, there is a 96% chance that you have unclaimed Capital Allowances. 

These allowances can be used to reduce your tax liability or potentially obtain a tax refund.  There is no limit to how far back the purchase took place as this is a statutory right set out in 1878.

Capital allowances are claimed on qualifying expenditure, meaning expenditure incurred for providing plant or machinery for the qualifying activity.  Plant and machinery means practically all tangible assets other than computer software, land and buildings.  Even fittings incorporated in buildings qualify as plant and machinery subject to certain exemptions.

While you cannot claim capital allowances for the expenditure on buildings (bricks and mortar, for example), you can make such claims for fixtures within the building that are considered plant and machinery.  This includes removable fixtures and integral features in the building.

Identification and valuation of plant and machinery forming part of a building is a complex issue.  Gullands can arrange for clients to be directed towards reputable specialists in dealing with the identification of unclaimed capital allowances for further investigation.

For more information contact Paul C. Burbidge, Head of Gullands’ Commercial Department, on 01622 689712 or