Embedded Capital Allowances – what are they?

People sometimes ask me about Embedded Capital Allowances, “what are they and can they help my business?”

If you have the same question about Embedded Capital Allowances, then the easiest answer is for me to ask you 4 questions:

  1. Do you own a freehold or long leasehold commercial property?
  2. If so, is that property being used for a qualifying trade?
  3. Can you prove that you have incurred capital expenditure on that property?
  4. Are you a UK tax payer?

If your answer to these four questions is yes, then you could be entitled to thousands of pounds of refundable tax.

Embedded Capital Allowances are a tax deductible allowance that can be set against business profits. Every commercial premises has some embedded capital allowances, but according to HMRC, some 90% of these are left unprocessed.

To find out more, and how your business’s growth could benefit through eligibility to claim Embedded Capital Allowances, please contact me, Ralph Savage, or call me on 0777 454 8822.

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