Unlock the Hidden Value Within Your Commercial Property

Most business owners are aware they can claim tax relief on assets like computers, vehicles, and equipment. But many overlook one of the most significant opportunities available – the untapped tax relief hidden within their commercial property.

These hidden opportunities come in the form of capital allowances: a valuable area of tax relief available on the plant and machinery embedded within your building. Identifying and valuing these assets correctly requires a specific blend of tax understanding and property expertise – a combination that’s best delivered by a chartered surveyor.

At BAND, we help businesses unlock this value, ensuring every qualifying asset is identified, valued, and claimed in full compliance with HMRC requirements.

What Are Embedded Capital Allowances?

While “embedded” isn’t a formal HMRC term, it’s a useful way to describe the plant and machinery integral to your property’s function – systems and fittings that are permanently fixed within the fabric of the building.

Typical examples include:

• Electrical systems
• Heating, ventilation, and air conditioning (HVAC)
• Hot and cold water systems
• Lifts and escalators
• Sanitary installations

Beyond these, other qualifying items such as carpets and moveable fixtures may also be eligible for relief.

Without specialist assessment, these costs are often buried within overall construction or acquisition figures – and as a result, they’re frequently missed in standard accounting practices.

Why Your Accountant Might Miss Them

Your accountant is your expert in tax law – but they’re not necessarily a specialist in the construction and valuation detail behind your property.

Invoices often provide broad, aggregated figures, making it difficult to isolate qualifying assets. Consider:

• Bundled costs: Builders’ invoices usually combine materials, labour, and installations under one heading.
• Historic claims: For second-hand properties, you’ll need to determine what has already been claimed to avoid duplication.
• Complex valuations: The cost of an installed system includes much more than the item itself – the wiring, pipework, and fittings may also qualify for relief.

This is where a chartered surveyor’s forensic approach adds real value.

The Surveyor’s Approach: Forensic, Detailed, and Defensible

A chartered surveyor’s role is to identify, analyse, and value every qualifying component within your property – ensuring your capital allowances claim is both maximised and HMRC-compliant.

At BAND, our process includes:

1. Comprehensive site inspection: We physically inspect the property, identifying all qualifying assets – from lighting and HVAC to hidden systems behind walls and ceilings.
2. Cost segregation: We separate qualifying items from non-qualifying structure costs, ensuring accurate allocation.
3. Specialist valuation: Our surveyors apply construction and valuation expertise to determine the correct value of each asset, including historical valuations where needed.
4. HMRC-compliant reporting: We prepare a robust, fully documented report – providing your accountant with the evidence required to support a defensible claim.
5. Technical navigation: Our team manages the complex legislative framework around elections, historic claims, and purchase agreements to ensure no entitlement is missed.

The Financial Impact

For property owners, the results can be substantial.
It’s not uncommon for 15%–50% of a property’s purchase price to qualify for capital allowances – and in refurbishment projects, that figure can be even higher.

By working with BAND, you can expect to:

• Enhance tax savings: Our detailed, defensible reports directly reduce your taxable profits.
• Boost cash flow: Large first-year allowances (such as the AIA) can deliver immediate cash benefits.
• Ensure compliance: Every report we produce meets HMRC’s disclosure and evidential requirements, reducing risk and ensuring peace of mind.

Don’t Leave Value Unclaimed

Capital allowances are one of the most overlooked sources of tax relief available to commercial property owners. With the right expertise, these hidden assets can deliver significant and lasting financial benefit.

While your accountant is the authority on tax, a chartered surveyor is the expert on your property. By bringing both together, you ensure every eligible allowance is properly identified, valued, and claimed.

Take the first step toward unlocking your property’s hidden value – contact BAND today for an initial consultation and discover how much tax relief may be waiting in your building.