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Commercial Property Capital Allowances

Office buildings, retail units, and commercial investment properties contain embedded assets that most landlords and investors never claim. HVAC systems, electrical infrastructure, and tenant fit-outs all qualify.

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15-30%
Of Property Value Claimable
£75,000
Average Commercial Claim
8-10
Weeks to Completion

The Embedded Assets Opportunity in Commercial Property

When you purchased your commercial property, you bought more than just bricks and mortar. You acquired a building with extensive embedded infrastructure - HVAC systems, electrical installations, lifts, fire safety systems, and tenant fit-outs. These embedded assets represent 15-30% of your property's value, but most commercial property owners never claim on them.

Why commercial properties qualify:

Modern commercial buildings require sophisticated infrastructure simply to function. Air conditioning and heating systems to maintain comfortable working environments. Electrical infrastructure to power offices and retail spaces. Lift installations for multi-storey buildings. Comprehensive fire safety systems to meet building regulations. All of this infrastructure is permanently embedded in your property and qualifies for capital allowances.

The investment property opportunity:

If you own commercial property as an investment, embedded assets represent an additional return on your investment that you're likely missing. A £1 million office building might contain £150,000-£300,000 in embedded assets. A £500,000 retail unit might contain £90,000-£160,000. These aren't theoretical numbers - they're real assets sitting in your property, waiting to be claimed.

The tenant fit-out advantage:

Many commercial property owners don't realise that tenant fit-outs - partitioning systems, washroom facilities, and service installations that form part of the building fabric - also qualify as embedded assets. If you've fitted out spaces for tenants or purchased properties with existing fit-outs, these represent additional claimable value that accountants often overlook.

What Qualifies in Commercial Properties?

HVAC & Climate Control

£20,000 - £80,000
Air conditioning systems
Heating installations
Ventilation and extract
BMS controls
Chillers and cooling plant

Electrical Infrastructure

£10,000 - £40,000
Main distribution boards
Sub-metering systems
Emergency lighting
Data cabling risers
Generator connections

Lifts & Access

£30,000 - £100,000
Passenger lifts
Goods lifts
Disabled access
Automatic doors
Security barriers

Raised Floors & Ceilings

£15,000 - £50,000
Raised access flooring
Suspended ceiling systems
Floor boxes and grommets
Perimeter trunking

Fire & Security

£10,000 - £40,000
Fire detection and alarm
Sprinkler systems
Access control
CCTV infrastructure
Intruder alarms

Tenant Fit-Outs

£20,000 - £80,000
Partitioning systems
Kitchen and breakout areas
Meeting room installations
Reception areas
Washroom facilities

Why Commercial Properties Are Asset-Rich

Unlike residential properties, commercial buildings require:

Commercial HVAC systems

Sophisticated air conditioning, heating, and ventilation systems essential for tenant comfort and building efficiency.

Enhanced electrical infrastructure

High-capacity distribution, sub-metering, emergency systems, and data cabling that residential properties never need.

Lift and access systems

Passenger lifts, goods lifts, and access control systems that add significant value and functionality.

Fire safety infrastructure

Comprehensive sprinkler systems, fire detection, and emergency lighting required for commercial building regulations.

Tenant fit-out infrastructure

Partitioning systems, washroom facilities, and service installations that form part of the building fabric.

Building management systems

BMS controls, security systems, and integrated building services that standard properties don't include.

All of these commercial-grade installations contain embedded assets that most accountants overlook.

The Embedded Assets Your Accountant Misses

Your accountant likely claims capital allowances on:

  • Office furniture and equipment
  • IT equipment and computers
  • Moveable fixtures
  • Carpets and soft furnishings

But they're probably missing:

  • HVAC and climate control systems (£20,000-£80,000)
  • Electrical distribution infrastructure (£10,000-£40,000)
  • Lift installations (£25,000-£70,000)
  • Fire safety and sprinkler systems (£15,000-£50,000)
  • Tenant fit-out infrastructure (£20,000-£80,000)
  • Building management systems (£10,000-£35,000)

These embedded assets typically represent 15-30% of your commercial property's value.

Commercial Property Capital Allowances FAQ

How much can I claim on my commercial property?
Typical claims range from £30,000-£200,000+ depending on property size, age, and specification. Office buildings with modern HVAC, lifts, and electrical infrastructure typically claim £50,000-£150,000. Larger or higher-spec properties can exceed £200,000.
I'm a landlord with tenants in place. Can I still claim?
Yes! We work around tenancies and can survey common areas plus base building services (HVAC, lifts, electrical infrastructure, fire safety). Tenant fit-outs can also be claimed depending on lease terms - if you paid for the fit-out, you can claim on those embedded assets.
What about properties I've owned for many years?
Retrospective claims are possible on properties owned for years. For properties purchased before 2012, there's no time limit. For post-2012 purchases, there's generally a 2-year window, but exceptions exist. We'll assess your specific situation and identify unclaimed embedded assets.
Do lifts qualify for capital allowances?
Yes! Passenger lifts and goods lifts are significant embedded assets, typically worth £25,000-£70,000 each. Many commercial buildings have multiple lifts, which can represent a substantial portion of the claim value.
What about HVAC and air conditioning systems?
HVAC and air conditioning systems are among the highest-value embedded assets in commercial properties, typically worth £20,000-£80,000+. This includes air conditioning units, heating systems, ventilation, BMS controls, and all associated infrastructure.
Can I claim on tenant improvements I've paid for?
Yes! If you've paid for tenant fit-outs, improvements, or refurbishments, those embedded assets qualify for capital allowances. This includes partitioning, washroom facilities, kitchen areas, electrical upgrades, and other permanent installations.
What's the difference between embedded assets and moveable fixtures?
Embedded assets are fixtures permanently attached to the building - HVAC systems, electrical infrastructure, lifts, fire safety systems. Moveable fixtures like office furniture and IT equipment should be claimed separately through Annual Investment Allowance (AIA). Our focus is the embedded building services.
How long does the process take for commercial properties?
From initial consultation to receiving tax relief typically takes 8-10 weeks. If required, the property survey takes 3-6 hours depending on property size, the valuation report takes 2-3 weeks, and HMRC processing takes 4-6 weeks after submission.
Do I need to be present during the survey?
It's helpful but not essential. We can work with your property manager or arrange access independently. Our surveyors are experienced in commercial property assessments and will contact you if clarification is needed.
What if I own multiple commercial properties?
Portfolio claims can deliver substantial tax relief across multiple properties. We can assess your entire portfolio efficiently, often surveying multiple properties in the same area to reduce costs. We can also phase claims to optimise your tax position across accounting periods.