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What capital allowances can I claim in my property rental business? Property rental business owners can claim a diverse range of capital allowances.

This is a freeview summary of those allowances with links to more detailed guidance. Subscribers click here for your detailed version of this guide.

Commercial property

Capital Allowances may be claimed on non-residential let properties:

Residential letting property

Claims for capital allowances can be limited for certin types of residential lettings business.

Choice of accounting basis

Claims for capital allowances are restricted for small property business who have not opted out of the Cash Basis, and claims may be restricted if fixed rate expenses are claimed too, see Accounting: Cash basis /fixed rate expenses?

 

Index to key guides

Guide Details

Annual Investment Allowance

What is the Annual Investment Allowance? What are the limits? What expenditure qualifies? 

Dwelling Houses & capital allowances

What is a dwelling house for capital allowance purposes? Can capital allowances be claimed in respect of a dwelling house? What expenditure qualifies?  
Enhanced Capital Allowances: energy saving plant 

100% allowance on expenditure incurred on energy saving plant and machinery.
Enterprise Zones: plant and machinery allowances

100% allowance on new plant and machinery

Fixtures: Overview

 

What are fixtures? How do I claim lost or unclaimed fixtures? When must fixtures be pooled? 
Integral features: At a glance What is an integral feature?
Plant & Machinery allowances What capital allowances are available on plant and machinery? How do you calculate them? What are qualifying activities?
Replacement of domestic items relief What is Replacement of Domestic Items Relief? When can it apply and what conditions must be met? 
Super-deduction & First-Year Allowances Finance Act 2021 provides for a new Super-deduction of 130% and a 50% first-year allowance for plant and machinery expenditure incurred by companies between 1 April 2021 and 31 March 2023.
Structures & Building Allowance (SBA)

Provides relief for capital expenditure on non-residential structures and buildings brought into use for qualifying activities.
Wear and tear allowance and renewals basis

Both withdrawn from April 2016.

Residential property letting businesses are unable to claim plant and machinery allowances, and these provided an alternative form of relief.  Wear and tear allowance was only available to landlords of furnished properties.

 


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