Capital allowances are an allowable tax deduction against expenditure on plant and machinery for use in your business, and the tax savings can be quite significant, especially with increased super deductions.
All UK taxpayers that have an interest in commercial property ie own or lease and have incurred capital expenditure under that interest can claim.
Unfortunately, the level of allowances is regularly changed by subsequent Governments, but the have reached levels of 130% relief with the Super Deductions which were abolished in 2023. So, the amount of tax saving achievable will depend on the property type and the specification, but on a new office construction up to 100% of your expenditure could qualify, some expenditure obtaining 100% tax relief in the first year.
Typically, elements such as air conditioning, wiring, heating, lighting, carpets, WCs and security systems will qualify for plant and machinery allowances up to 100% and roof, walls and floors at a lower 3%.