Capital allowances glossary

24 terms that come up when capital allowances are claimed on UK commercial property, written for owners rather than for accountants. Each one covers what it means, why it matters to you, and the misconception that usually goes with it.

Core Allowances

• Annual Investment Allowance
• First-Year Allowance
• Full Expensing
• Plant and Machinery Allowances
• Enhanced Capital Allowances

Legislation & Compliance

• Qualifying Expenditure
• Capital Allowances Act 2001

Property Reliefs

• Structures and Buildings Allowance
• Historic Asset Remediation

Mechanisms & Pools

• Writing Down Allowance
• Disposal Value
• Main Pool
• Special Rate Pool
• Balancing Adjustment

Asset Classifications

• Integral Features
• Short-Life Asset
• Long-Life Asset

Specialist Reliefs

• Contributed Allowances
• Freeport Tax Reliefs
• Research and Development Allowances

Property Transactions

• Fixed Value Requirement
• Fixtures Rules
• Pooling Requirement
• Section 198 Election