Embedded Fixtures & Fittings Capital Allowances

Overview

The capital allowances claim most accountants miss.

When a business buys, builds, refurbishes or fits out a commercial property, standard capital allowance claims typically capture the obvious items: furniture, equipment, vehicles. What they rarely capture are the embedded fixtures and fittings permanently built into the structure of the building itself — the heating systems, electrical installations, air conditioning, pipework, lifts, lighting rigs and security infrastructure that are essential to the building's function but invisible on a standard balance sheet.

These items fall under a specialist area of the Capital Allowances Act 2001 known as Property Embedded Fixtures and Fittings (PEFFs), and they can represent a significant proportion of a commercial property's total value — often generating tax relief worth tens or hundreds of thousands of pounds. BC&A works alongside a qualified surveyor to identify every qualifying item in your property, calculate the full allowable claim and submit it to HMRC in a way that stands up to scrutiny.

What's Included

Initial eligibility assessment
Surveyor-led site inspection
Identification of qualifying PEFFs
Valuation of embedded assets
Annual Investment Allowance (AIA) optimisation
Special rate pool & main pool allocation
Section 198 election advice on acquisitions
Retrospective claims on historic expenditure
HMRC submission & ongoing correspondence
Disposal & future sale planning

Frequently Asked Questions

How much tax relief could a claim generate?

It varies considerably depending on the type, age and size of the property, but embedded fixtures and fittings can represent 20–40% of a commercial property's total value. For a business property purchased for £1 million, qualifying embedded assets could generate an allowance of £200,000 to £400,000 — translating directly into a reduction in your corporation or income tax liability.

My accountant already claimed capital allowances on the property. Is there still more to claim?

Quite possibly, yes. Standard capital allowance claims typically cover moveable plant and machinery. Unless your accountant commissioned a surveyor-led physical inspection of the building, it is unlikely that the full range of embedded fixtures and fittings has been identified and claimed. A specialist review almost always uncovers additional qualifying expenditure.

Is there a time limit on making a claim?

For properties purchased on or after April 2014, a pooling requirement applies and there are conditions that affect the timing of claims on acquisition. For properties purchased before April 2014, there is no time restriction on retrospective claims — meaning historic expenditure can still be reviewed and relief recovered. We will assess your specific position as part of the initial review.

What happens when we come to sell the property?

Capital allowances claimed on embedded fixtures and fittings need to be addressed carefully at the point of sale. A Section 198 election between buyer and seller determines how the allowances are transferred. Getting this right protects both parties. If you have made a claim and are contemplating a sale, we advise reviewing your position before contracts are exchanged — not after.

Why choose BC&A for Embedded Fixtures & Fittings Capital Allowances

We do more than keep your books in order. Our approach is proactive — we review your numbers regularly, flag opportunities and ensure you are always ahead of deadlines.

Always ahead of deadlines

We prepare and submit all accounts and filings well ahead of every deadline — you will never face a penalty with BC&A.

Real-time visibility

Cloud accounting means your numbers are always current — giving you the clarity to make faster, better business decisions.

Fixed fees — no surprises

We agree fees upfront before any work begins. No hourly billing, no unexpected invoices — just clear, transparent pricing.

Unlock The Tax Relief Hiding Inside Your Commercial Property