Finding £5.5million in Capital Allowances


Purchase of Office Building

Instructed by a property company client to advise on the availability and level of capital allowances following their purchase of an office building for £21million.

Having ascertained that the seller was a non-taxpaying institution who was not eligible to claim capital allowances, and who acquired the property from the original developer, we were able to determine that there were no restrictions on the client’s entitlement to make a claim.

Following a detailed property inspection to identify the qualifying assets and to enable us to estimate a replacement cost for the building, we prepared a capital allowances claim as an apportionment of the purchase price.

The total level of capital allowances claimed amounted to in excess of £5.5million, being some 26% of the purchase price, and resulted in a tax saving in the first year of approximately £180,000 and over the first three years of ownership of some £475,000.


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Purchase Price

This is the original or anticipated purchase price or development cost of your property.

Do not enter the current value here.

Building Type

Please provide the type of building you are looking to claim allowances on.

Note: You will be able to add further information about the type of building in the next step.

Your options here are;

  • Office.
  • Retail: Including high street, shopping centres and retail warehouses.
  • Mixed Use.
  • Industrial: Including warehouses and distribution centres.
  • Other: Leisure, hotels, casinos etc.
Building Category

Please select the description that best suits your property.

Other Information

Please provide any additional information about your property that you may consider appropriate.

Floor Area

Please enter the total floor area of the property.
You can provide either square footage or metres, but only use figures here.
The floor area you specify can either be gross or net internal space.

Floor Area Units

Please select the type of area e.g. Metres or Feet
and if the measurement has been taken as net or gross internal space.

Date of Purchase

Please enter the approximate month and year of purchase, or
if you have developed the property, please provide the
approximate date of completion.

Location Of Property

Where is the property located? Please provide town/city, and country.