Capital gains tax

Capital gains allowances & tax relief

Capital gains allowances are a statutory right to tax relief for UK businesses. Set out in the Capital Allowances Act 2001, they reduce the amount of income that is charged to tax. They can be claimed by property investors, owners and occupiers, whether the property is held as an investment or is used for the purposes of a trade.

What qualifies for a capital gains allowance?

This tax relief applies to plant, machinery and equipment, and it also extends to expenditures incurred in buying, building, fitting out and refurbishing commercial property. A vast range of different undertakings can be eligible for capital gains allowance, including:

  • Heating or cooling systems
  • Lift installations
  • Security and protection systems
  • Communications and IT systems
  • Mechanical and electrical installations
  • Fixtures and fittings
  • Sanitary ware and associated plumbing
  • Specialist items required for a particular trade
  • Certain professional costs

If you are unsure whether a specific business expenditure qualifies for tax relief, Fiducia can advise you.


Businesses can experience significant benefits as a result of capital gains tax allowances. For instance:

  • They are a very low risk means of reducing tax liabilities
  • Post-tax yields on investments can be significantly enhanced
  • Allowances can be permanently locked in, even when a property is sold later on
  • Tax relief is effectively available twice on the same cost; once as capital allowances and then as a deduction from any gain made when the property is sold.

Get in touch

It is abundantly clear that you should ensure your business is making the most of capital gains tax allowances wherever possible.

For expert guidance on this and other matters such as corporation tax and business rates management, call Fiducia on 01625 599 200, or use our contact form instead.