Value of Allowances

The value of qualifying assets in a building will vary depending on a number of factors, including the building size, specification and location.  However as a guide, the cost of constructing an air conditioned office building may be made up of as much as 35% plant and machinery, whilst this could still be 20% to 25% on a less sophisticated building.

Even the most basic industrial and retail properties may contain qualifying assets accounting for up to 10% of their construction cost, proving that irrespective of the type of property, substantial savings can be made.

On a refurbished property, up to 75% of the expenditure could be eligible for capital allowances.

When applied to purchased buildings, which includes the cost of land (on which allowances are not available) the qualifying assets could account for as much as 25% of the purchase price of an air conditioned office building, 15% of a basic office building and up to 8% of an industrial building.