Fiscal Umbrella's capital allowance specialists help Luton businesses and UK companies maximise tax relief on plant, machinery, commercial property, and business assets — legally and compliantly.
Understanding Capital Allowances
A powerful UK tax relief that lets businesses deduct the cost of qualifying assets from taxable profits — reducing Corporation Tax or Income Tax owed to HMRC.
When your business purchases assets — machinery, equipment, vehicles, IT systems, or commercial property fixtures — you cannot usually deduct the full cost in your accounts as an expense. Instead, HMRC allows you to claim Capital Allowances, which let you deduct a proportion (or in many cases the full cost) of qualifying assets from your taxable profits.
Capital Allowances are one of the most valuable yet consistently underclaimed tax reliefs available to UK businesses. Many companies only scratch the surface of what they're entitled to — particularly when it comes to embedded fixtures in commercial property, where tens or even hundreds of thousands of pounds of qualifying expenditure often go unidentified.
At Fiscal Umbrella, our specialists conduct a thorough review of your assets and expenditure to ensure every qualifying pound is captured — whether you're a sole trader buying new equipment or a limited company that has recently purchased commercial premises.
Capital allowances can also be claimed retrospectively on past asset purchases that were never properly assessed, providing an immediate reduction in your current-year tax liability.
Types of Capital Allowances
There are several distinct types of capital allowances, each with different rates and rules. Our specialists identify which schemes maximise your tax relief.
The AIA allows businesses to deduct the full cost of qualifying plant and machinery in the year of purchase — up to £1 million per year. This is the most widely used and impactful capital allowance for SMEs and is available to most businesses regardless of size.
Introduced permanently from April 2023 for incorporated businesses, Full Expensing allows companies to deduct 100% of main rate plant and machinery costs in year one, and 50% of special rate assets — with no upper spending cap.
For assets not fully covered by AIA or Full Expensing, WDAs spread relief over time. Main rate pool assets (most plant and machinery) attract 18% WDA per year; special rate assets (integral features, long-life assets) attract 6%.
Available since 2018 for the construction, renovation, or conversion of non-residential buildings. SBA provides 3% per year straight-line relief on qualifying construction costs, and can be a significant long-term saving for property-owning businesses.
Businesses investing in energy-efficient or water-saving technology from the government's approved Energy Technology List may qualify for 100% first-year ECAs — effectively giving full tax relief in the year of purchase.
When purchasing commercial property, significant capital allowances often exist in embedded fixtures (heating, electrical, plumbing). A Section 198 election must be agreed between buyer and seller. This is a specialist area where many businesses miss out on substantial, unclaimed tax relief.
What Qualifies
Capital allowances cover a wide range of business assets. Many qualifying items are overlooked — our team ensures nothing is missed.
Who Can Claim
Capital allowances are available to almost every UK business that pays tax and purchases business assets. Here's who can claim:
Subject to Corporation Tax — eligible for all capital allowance types including Full Expensing.
Self-employed individuals can claim capital allowances on their Self-Assessment tax return against Income Tax.
Business partnerships claim capital allowances at partnership level, then share the tax saving among partners.
Commercial property owners and furnished holiday let landlords can claim on fixtures, fittings, and qualifying expenditure.
Charities with trading subsidiaries subject to Corporation Tax can claim allowances on business assets.
Start-ups and new businesses can claim on assets purchased before trading began, even during the pre-trading period.
Our Process
From your first call to tax savings in your pocket — our process is straightforward, thorough, and designed around you.
We begin with a no-obligation conversation to understand your business, recent purchases, and any commercial property you own or have purchased.
We review your fixed asset register, accounts, and capital expenditure records to identify every qualifying asset — including those often overlooked.
We allocate assets to the correct pools and apply the optimal allowance (AIA, Full Expensing, WDA, SBA) to maximise your relief in the most tax-efficient way.
Capital allowances are incorporated accurately into your Corporation Tax or Self-Assessment return, with full supporting computations for HMRC.
We review your capital allowances position annually as your business grows, assets change, and HMRC rules evolve — so you never miss future relief.
Why Choose Us
Capital allowances — especially for commercial property and embedded fixtures — are complex and frequently mishandled. Our team has the specialist expertise to identify all qualifying expenditure correctly and argue your claim confidently with HMRC.
If your previous accountant didn't claim capital allowances optimally, it's not too late. We can review past years and often unlock significant unclaimed relief that feeds directly into your current tax position.
We specialise in identifying embedded fixtures and conducting Section 198 elections on commercial property purchases — an area where many generalist accountants leave significant money unclaimed.
We're based right here in Luton at Crystal House, LU1 1HS. You can meet us face to face, and you'll always deal with a named specialist — not a call centre or rotating junior staff.
We agree fees clearly before any work begins. No hidden costs, no surprise invoices. Our fee structures are competitive and designed to ensure you always come out significantly ahead.
Capital allowances are handled as part of your broader tax planning — not in isolation. We look at your full picture to ensure the timing and use of allowances produces the best outcome across all your taxes.
Frequently Asked Questions
Book a free, no-obligation consultation with our capital allowances specialists in Luton. We'll review your assets and show you exactly what you're entitled to claim.
Email: info@fiscalumbrella.co.uk | Suite 2B, Crystal House, Luton, LU1 1HS | 8AM–7PM, Mon–Sat
The information on this page is for general guidance only and does not constitute tax advice. Capital allowance eligibility and rates depend on your individual circumstances and the nature of assets purchased. HMRC rules are subject to change. Fiscal Umbrella Accountants recommends obtaining tailored professional advice before making a claim.
