What does Capital Allowances and The Plant And Machinery Act actually cover?

Are you a commercial property owner? If so you are sitting on a potential tax relief of thousands of pounds that you are probably not aware of!

In 2001, Gordon Brown made the ‘Plant and Machinery Act’ more accessible in the form of Capital Allowances for business property owners. This act provides tax relief and in some cases tax rebates for commercial property owners and was brought out as a stimulus for the economy to help businesses prosper. Many of the visitors to this site will have questions such as ‘What is Capital Allowances’ and ‘how do I claim Capital Allowances?’.

Basically, if you picked your building up, turned it upside down and shook it, all of the integral components that fell out would be part of the first and second fix of the building. You can claim for various elements as part of your Capital Allowances including;

  • Central heating, hot water and air conditioning systems
  • Alarms and sprinklers
  • Ventilation systems
  • Electrical equipment and installations eg switchboard, transformer and associated switch gear
  • Standby generator, emergency lighting and power services
  • Lifts and escalators
  • Many, many more elements

All of the above are tax deductable.

Claiming Enhanced Capital Allowances and more specifically The Plant and Machinery Act tax relief is a right, not a privilege for commercial property owners. You are able to claim on this legislation and should ensure that you claim everything you are entitled to. A lot of the time, accountants will only claim for basic third fix of the building, if they claim for Capital Allowances at all. Because Capital Allowances laws change all the time and because it is such a specialist area we can carry out the claim for you. We will work with your accountant to quickly identify all the other elements you can claim for, meaning your tax relief will be substantially more!

Get in touch now to speak to a consultant and get your claim started! 0161 968 2051