- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 21 May 2021
Capital allowances for construction
‘Capital allowances are a group of UK income tax and corporation tax reliefs that are available to businesses for capital expenditure. Capital expenditure creates an asset or advantage with enduring benefit and is usually recorded as a fixed asset on the balance sheet in the financial accounts. Examples are expenditure upon land, buildings and equipment.’ Ref Capital allowances and land remediation relief, 1st edition, guidance note (GN 111/2013) published by the Royal Institution of Chartered Surveyors (RICS) July 2013.
- Plant and machinery (lifts, escalators, mechanical and electrical plant, information and communications technology, equipment, furniture, fittings and office equipment).
- Thermal insulation for industrial buildings.
- Making certain buildings comply with the part B of the building regulations (fire safety).
- Safety measures for sports grounds and stadia.
- Security systems if there is a special threat to the use of the building.
- Scientific research and development facilities.
- Enterprise zones in relation to industrial and commercial buildings, including hotels.
The tax relief allowed relates to the reduction in value (depreciation) of the qualifying assets. The percentage of annual depreciation depends on the item claimed and the size of the business making the claim.
The percentage of annual depreciation depends on the item claimed and the size of the business making the claim. The client's finance director or in-house tax team may quantify the level of qualifying expenditure, or they may appoint a specialist capital allowances advisor. Capital allowances services are offered by specialist boutique firms, large and mid tier accountancy firms (who employ chartered surveyors) and cost consultants.
 Related articles on Designing Buildings Wiki
- Base construction.
- Building Regulations.
- Business case.
- Capital allowances and super deductions.
- Capital costs.
- Capital gain.
- Capital gains tax.
- Cost consultant.
- Cost plans.
- Enhanced Capital Allowance scheme.
- ECA Water Scheme.
- Financial year.
- Fit out.
- Industrial buildings allowance (IBA)
- Land remediation relief.
- Net Present Value.
 External references
- HMRC: Capital allowances.
Featured articles and news
Myths and top tips.
CLC plans to ease impact of construction inflation.
BG 50 & VDI 2035 – your questions answered.
Will the way we heat homes change when winter comes ?
Can XR technology be leveraged in design & construction?
Or are you capping.
Digital gaming competition for UK students aged 16 to 18.
Heritage protection in England vs Australia.
Three-quarters of fire doors fail inspections
The role of geoparks, biospheres and world heritage sites.
Just one month to go ! Find out more here.
A new gallery for the University of Huddersfield.
What will it take to stop it ?
To celebrate world bee day 2022 !
Not forgetting part F and the new part overheating part O.
As energy prices jump up in cost.
With people in the UK from Ukraine.
Industry leader Steve Murray takes on role.
An abundant and versatile building material.
600,000 heat pump installations targeted per year by 2028.
Helping prevent those unwanted outcomes.