As experienced capital allowances accountants in Bristol, Everett King understands the challenges property investors face when navigating complex tax rules. One of the most overlooked opportunities is capital allowances – a powerful way to reduce tax bills, boost cash flow, and maximise return on investment.
Many landlords and property owners miss out on these reliefs because they believe they don’t qualify, or they’re unsure about what can be claimed. The truth is, both UK and overseas property businesses may be eligible. With the right guidance from Everett King tax specialists, you can unlock valuable tax savings and ensure you’re not leaving money on the table.
1. What landlords should know about capital allowances?
Capital allowances cannot usually be claimed on dwelling houses. However, there has been an exception for furnished holiday lets (FHLs), which qualified for plant and machinery allowances up until April 2025, when the special FHL regime was abolished.
If your property qualified as an FHL during the 2024/25 tax year, you may still be entitled to make a claim. Transitional rules allow losses to be carried forward against property income, and existing capital allowance pools can continue to be used.
2.Types of allowances available
Plant and machinery allowances
Property investors can claim on qualifying fixtures and integral features within commercial properties, such as:
Electrical systems
Heating and hot water systems
Fitted kitchens
Bathroom sanitaryware
When purchasing a property, the allocation of fixtures is often determined by a tax election agreed with the seller, making early negotiation vital. If you’re installing new fixtures, qualifying expenditure may also cover transportation, installation, and related survey costs.
In addition, business assets such as computers, phone systems, and maintenance equipment can also qualify.
Most businesses can claim the Annual Investment Allowance (AIA), which gives 100% tax relief on qualifying expenditure up to £1m. Larger investments may also qualify for full expensing or first-year allowances, with writing down allowances available at 18% (main pool) or 6% (special rate pool) for any remaining costs.
2a. Structures and Buildings Allowance (SBAs)
For non-residential properties, the Structures and Buildings Allowance provides relief at a flat 3% per year. This covers costs related to construction, renovation, or acquisition. Claims aren’t limited to buildings – structures such as roads, paths, and car parks also qualify, along with associated costs like design fees and site preparation.
2b. Other reliefs for property investors
Tenant agreements: Allowances may apply where lease premiums are paid, provided a joint election is made between landlord and tenant.
Cash vs accruals basis: Landlords must use the accruals basis to claim allowances, though some deductions are still possible under the cash basis.
Land remediation relief: Corporate landlords who clean up contaminated land (e.g. asbestos removal or tackling Japanese knotweed) may qualify for enhanced tax relief of up to 150%.
Why work with Everett King?
Capital allowances are complex, and without expert guidance it’s easy to miss opportunities. At Everett King, our team of Tax specialists in Bristol and Exeter work closely with landlords, developers, and property investors to:
Identify qualifying expenditure
Maximise available reliefs
Ensure claims are fully compliant with HMRC requirements
Whether you own commercial property, furnished holiday lets, or a mixed portfolio, our tax specialists can help you reduce your liabilities and achieve long-term savings.
Speak to our tax specialists today
If you want to explore how capital allowances could reduce your tax bill, get in touch with Everett King today. Our experienced team will review your property portfolio, highlight eligible claims, and ensure you’re making the most of the reliefs available.
Contact us to find out how we can support your business.