If you own, develop, or invest in commercial property, there is a good chance you could be missing out on valuable tax reliefs.

One of the most commonly overlooked areas is capital allowances – a government-backed incentive designed to reduce taxable profits by recognising the capital investment made in qualifying assets.

At Williamson & Croft, we have long-standing expertise in the property sector, and we’ve seen just how many claims are missed.

With development in the North West continuing to thrive, now is the time for business owners and property investors to revisit what they may be entitled to claim.

What are Capital Allowances?

Capital allowances allow businesses to deduct the cost of eligible capital expenditure from their taxable profits. These allowances relate primarily to ‘plant and machinery’ items, which are used in the operation of a business but are embedded within the property.

This includes assets such as air conditioning systems, lifts, security systems, electrical wiring, lighting, heating and ventilation, and even fitted kitchens or toilets.

Claims can be made on new developments, refurbishments, or even when acquiring existing commercial properties. The issue is that many of these qualifying items are not always visible or understood during the acquisition process.

As a result, unless a detailed capital allowances review has been carried out – ideally before or shortly after purchase – those entitlements are often left unclaimed.

Why claims are missed

The unfortunate truth is that many property owners and business decision-makers are unaware of the reliefs available to them, and this is often because their advisers haven’t raised the issue.

Once a commercial property transaction is complete, the opportunity to claim can become more difficult. Without specific clauses in the contract and a clear record of the plant and machinery embedded within the building, it can be nearly impossible to retrospectively secure the relief. This is why proactive advice at the right stage is crucial.

Additional reliefs: More than just capital allowances

While capital allowances are a core consideration, there are other valuable reliefs that can reduce your tax liability in relation to property ownership and development.

One of the most underutilised is Land Remediation Relief (LRR). This relief is available to companies that incur costs in cleaning up land that is contaminated or derelict.

Common qualifying works include removing asbestos, dealing with Japanese Knotweed, treating pollutants or contaminants in the ground, and removing underground structures such as old foundations or storage tanks.

If eligible, companies can claim an enhanced deduction of 150 percent of the qualifying costs, or, in some cases, a cash credit if the business is loss-making.

LRR is especially relevant across areas of the North West where former industrial or brownfield sites are being brought back into use.

In many cases, developers carry out remediation works without realising that the costs could be used to generate substantial tax savings.

VAT and property – Hidden opportunities

Property transactions and developments often involve significant VAT implications. Whether it’s the construction of new buildings, conversions of commercial spaces into residential use, or alterations to listed buildings, there are a range of VAT reliefs that may apply.

These include zero-rating for certain new dwellings, reduced rates for approved conversions, and exemptions for certain residential lettings.

However, VAT reliefs are notoriously complex and heavily dependent on project planning and execution. If the correct structure is not in place at the start of the project, the opportunity to benefit from a reduced VAT burden can be lost entirely.

This is an area where specialist input can provide real value.

The importance of strategic restructuring

Beyond reliefs, there are further savings to be had through proper structuring of property ownership and transactions. Whether you’re transferring property between group companies, entering a joint venture, or reconfiguring leases, careful planning can ensure that your arrangements are tax-efficient while remaining fully compliant with HMRC requirements.

We work closely with clients to advise on property structures that support long-term growth while making full use of available reliefs and allowances.

These decisions should never be left to chance or made without full understanding of the tax implications.

How we can help

Williamson & Croft has always had a strong presence in the property sector, and with increasing demand in the North West, we’re deepening our focus in this area.

We offer detailed capital allowances reviews, property tax audits, and strategic planning for new acquisitions, developments and refurbishments.

We frequently work with clients who have owned commercial property for years without ever being advised to review potential reliefs. In many cases, we have identified previously missed claims that have resulted in significant tax savings.

Our team ensures that every eligible component is identified, documented, and submitted correctly to HMRC. We also stay ahead of the latest legislative changes so that our clients are always informed and protected.

Have you missed out?

If you’ve bought, refurbished or developed commercial property – or plan to – we strongly recommend reviewing your current tax position.

Ask your accountant whether you have claimed all available capital allowances and explored other reliefs such as LRR or VAT savings. If the answer is unclear or lacking in detail, it might be time to get a second opinion.

There is no harm in asking, but there could be significant value in doing so.

At Williamson & Croft, we’re committed to helping businesses unlock the full potential of their commercial property investments. If you’re unsure whether you’ve claimed everything you’re entitled to, we’d be happy to have a conversation. It could be worth far more than you think.