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Manufacturing & Industrial Capital Allowances

Factories, warehouses, and industrial premises contain substantial embedded assets - electrical infrastructure, compressed air systems, extraction equipment, and specialist installations that most manufacturers never claim.

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20-35%
Of Property Value Claimable
£125,000
Average Industrial Claim
10-14
Weeks to Completion

The Embedded Assets Opportunity in Industrial Properties

Your industrial property isn't just a building - it's a complex operational facility with extensive embedded infrastructure. The high-voltage electrical systems that power your operations. The compressed air systems that run your machinery. The extraction systems that ensure health and safety compliance. The material handling infrastructure that enables your workflow. All of this infrastructure is permanently embedded in your property and qualifies for capital allowances.

The industrial property advantage:

Industrial and manufacturing properties contain some of the highest-value embedded assets because they require sophisticated infrastructure simply to operate. High-voltage electrical supplies and distribution systems worth tens of thousands. Compressed air systems with extensive pipework networks. Comprehensive extraction systems for dust, fumes, and ventilation. Material handling infrastructure including loading bays, overhead cranes, and conveyor systems. Fire safety systems including sprinklers and suppression systems required by regulations. These aren't optional extras - they're essential operational infrastructure.

What most industrial operators miss:

Your accountant likely claims capital allowances on production machinery and moveable equipment through Annual Investment Allowance (AIA). But they're missing the embedded building infrastructure - the electrical systems, compressed air networks, extraction infrastructure, and material handling installations that are permanently attached to the building. These embedded assets typically represent 20-35% of your property's value, often amounting to £50,000-£500,000+ in unclaimed tax relief.

The compliance connection:

Many of these embedded assets exist because of health and safety regulations, environmental requirements, or operational necessities. The extraction systems required for compliance. The fire safety systems mandated by building regulations. The electrical infrastructure needed to power operations. These regulatory requirements create embedded assets that qualify for capital allowances - turning compliance costs into tax relief opportunities.

What Qualifies in Industrial Properties?

Electrical Infrastructure

£30,000 - £150,000
High voltage supplies
Distribution systems
Busbar systems
Power factor correction
Emergency generation
Process lighting

Compressed Air & Process Services

£20,000 - £80,000
Compressor installations
Air distribution networks
Process cooling
Steam generation
Process water treatment

Extraction & Ventilation

£15,000 - £60,000
Dust extraction systems
Fume extraction
General ventilation
Spray booth extraction
LEV systems

Loading & Material Handling

£20,000 - £100,000
Loading dock equipment
Dock levellers
Roller shutters
Cranes and hoists (fixed)
Conveyor infrastructure

Fire & Safety

£15,000 - £60,000
Fire detection systems
Sprinkler installations
Emergency lighting
Fire suppression
Safety barriers

Specialist Installations

£25,000 - £150,000+
Cleanroom infrastructure
Cold storage systems
Temperature controlled areas
Process drainage
Effluent treatment

Why Industrial Properties Are Asset-Rich

Unlike standard commercial properties, manufacturing facilities require:

Specialist process infrastructure

Compressed air systems, steam generation, process cooling, and industrial services that standard buildings never need.

High-capacity electrical systems

High voltage supplies, busbar systems, power factor correction, and emergency generation for production equipment.

Industrial extraction systems

Fume extraction, dust collection, and ventilation systems essential for health and safety compliance.

Material handling infrastructure

Loading bay equipment, overhead cranes, conveyor systems, and specialist handling installations.

Enhanced fire safety systems

Sprinkler systems, fire suppression, and safety barriers required for industrial building regulations.

Specialist installations

Cleanroom infrastructure, cold storage, process water treatment, and environmental control systems.

All of these industrial-specific installations contain embedded assets that most accountants overlook.

The Embedded Assets Your Accountant Misses

Your accountant likely claims capital allowances on:

  • Production machinery and equipment
  • IT equipment and computers
  • Office furniture
  • Moveable tools and equipment

But they're probably missing:

  • Electrical infrastructure and distribution (£30,000-£150,000)
  • Compressed air and process services (£20,000-£80,000)
  • Extraction and ventilation systems (£25,000-£100,000)
  • Fire safety and sprinkler systems (£15,000-£60,000)
  • Material handling infrastructure (£20,000-£75,000)
  • Specialist installations (cleanrooms, cold storage) (£30,000-£120,000)

These embedded assets typically represent 20-35% of your industrial property's value.

Manufacturing & Industrial Capital Allowances FAQ

How much can I claim on my industrial property?
Typical claims range from £50,000-£500,000+ depending on property size and complexity. Factories with extensive process infrastructure, compressed air systems, and specialist installations typically claim £100,000-£300,000+. Larger facilities with cleanrooms, cold storage, or complex extraction systems can exceed £500,000.
What's the difference between embedded assets and plant & machinery?
Embedded assets are fixtures permanently attached to the building - electrical infrastructure, compressed air piping, extraction systems, fire safety, and building services. Plant and machinery (production equipment, vehicles, forklifts) should be claimed separately through Annual Investment Allowance (AIA). We focus on the building-related embedded assets that accountants typically miss.
Do compressed air systems qualify for capital allowances?
Yes! Compressed air systems including compressors, air distribution networks, and associated infrastructure are significant embedded assets, typically worth £20,000-£80,000+. These are often substantial value items that many accountants overlook.
What about extraction and ventilation systems?
Industrial extraction and ventilation systems including fume extraction, dust collection, and process ventilation are major embedded assets, typically worth £25,000-£100,000+. These are essential for health and safety compliance and represent substantial claim value.
Can we claim on energy efficiency improvements?
Yes! Energy efficiency improvements including LED lighting upgrades, insulation, HVAC replacements, solar installations, and process efficiency improvements can qualify for capital allowances. These often represent significant additional claim value.
Do cleanrooms and specialist installations qualify?
Yes! Cleanroom infrastructure, cold storage systems, process water treatment, and environmental control systems all qualify as embedded assets. These specialist installations can be worth £30,000-£120,000+ depending on specification.
What about electrical infrastructure for production equipment?
Electrical infrastructure serving production equipment qualifies as embedded assets. This includes high voltage supplies, distribution systems, busbar systems, power factor correction, and emergency generation - typically worth £30,000-£150,000+.
How long does the process take for industrial properties?
From initial consultation to receiving tax relief typically takes 10-14 weeks. Industrial surveys take longer due to complexity - often a full day or more. The comprehensive valuation report takes 3-4 weeks, and HMRC processing takes 4-6 weeks after submission.
Will the survey disrupt production?
No. Our surveyors work around production schedules and can survey during maintenance periods or quieter times. We understand the importance of minimising disruption to operations and will coordinate with your team.
What if we've owned the property for many years?
Retrospective claims are possible. 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 all unclaimed embedded assets.