Capital Allowances Changes Are Now in Force, What Commercial Property Owners Need to Know
Most businesses think of capital allowances as something linked to buying new equipment.
But one of the biggest missed opportunities we see is actually hidden within commercial property.
Now that the 2026 capital allowances changes are in force, including the reduction in the main rate of Writing Down Allowance from 18% to 14%, it is becoming increasingly important for businesses to ensure qualifying expenditure has been properly identified.
What many commercial property owners do not realise is that qualifying plant and machinery can already exist within a building they own.
Depending on the property and the nature of the expenditure, this can include:
- Electrical systems
- Lighting
- Heating and air conditioning
- Cold water systems
- Fire alarms
- Security systems
- Specialist installations
We regularly speak to businesses who assumed: “Our accountant already dealt with this.”
The reality is that identifying embedded fixtures within commercial property often requires a specialist review involving survey based analysis and detailed apportionment work.
Hotels, offices, industrial units, care homes, restaurants, pubs and other types of commercial property can all contain substantial qualifying expenditure that may never have been reviewed properly.
In many cases, historic acquisitions and refurbishment projects are where opportunities are missed.
As capital allowances legislation continues to evolve, reviewing historic expenditure becomes increasingly important, particularly before documentation becomes harder to obtain or key information is lost over time.
At Blue Dawn Commercial, we specialise in capital allowances relating to commercial property, working alongside accountants, solicitors and property owners across the UK.
If you are unsure whether a commercial property acquisition or refurbishment has ever been reviewed properly for capital allowances purposes, we would be happy to have an initial discussion.
