Capital allowances are a valuable form of tax relief available to anyone incuring capital expenditure buying or building commercial property.

As a business you can claim tax allowances, called capital allowances, on certain purchases or investments, which means you can deduct a proportion of these costs from your taxable profits and reduce your tax bill. Capital allowances are available when a commercial property is acquired for use in the course of a trade or property investment business or when commercial new-build, extension or fitting-out/refurbishment works are correctly interpreted so that all qualifying assets are proactively identified.