Statutory UK Property Tax Relief

Embedded Capital Allowances on Commercial Property

Unlock substantial tax relief embedded within your building’s fixtures, fittings and integral features under the Capital Allowances Act 2001.

Statutory Framework

What Are Embedded Capital Allowances?

When you purchase a commercial property, a significant proportion of what you pay is for items permanently fixed into the structure of the building, known under UK tax legislation as Integral Features, Plant & Machinery.

Under the Capital Allowances Act 2001 (CAA 2001), UK businesses, partnerships and individuals paying Corporation Tax or Income Tax are legally entitled to offset these embedded asset values against their taxable trading or rental profits.

Because these assets are embedded behind walls, beneath floors and throughout risers, standard purchase completion statements do not itemise them. Uncovering them requires a forensic on-site or desktop surveying audit.

Why General Accountants Rely on Our Surveying

HMRC requires an on-site or desktop review conducted by a surveyor to value the fixtures, fittings and integral features. Most accountancy firms will not have a surveyor in-house and therefore cannot make adjustments for ECA. Birchwood Advisors bridges the gap between surveying and accountancy, providing specialist advice in the field.

Methodology

How a Capital Allowances Claim Works

From initial title review through to HMRC submission and tax reduction, we take care of the entire process.

01

Free Feasibility Audit

We review Land Registry title documents and purchase contracts to confirm untapped allowances with zero financial risk.

02

Forensic Survey

Our specialist surveying team carries out a forensic review of the property to identify, quantify and catalogue qualifying mechanical, electrical and other embedded fixtures.

03

HMRC Valuation Report

We produce an extensive statutory valuation report cross-referencing RICS quantity surveying benchmarks and relevant CAA 2001 sections.

04

Tax Realisation & Defence

We prepare the claim and can submit the necessary amendments directly to HMRC, or work with your accountant where preferred, delivering the tax benefit and supporting the claim through any HMRC enquiries.

Let's talk about your property

An initial conversation costs nothing and usually tells us quickly whether there is relief worth pursuing.
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