Perenco UK Ltd v HMRC – FTT Tax Case
Background
Perenco UK Ltd (PUK) acquires and operates mature hydrocarbon assets. In 2011, PUK acquired BP Exploration Operating Company Ltd (BPEOC) and ARCO British Limited’s (ARCO) ~67.5% interest in the Wytch Farm and Wareham oilfields. A sale and purchase agreement (BASPA) was signed on 16 […]
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Following government consultation on Land Remediation Relief in Spring 2025, Lovell Consulting understands the responses are now published. Background and key findings are listed below. Link to full publication: https://assets.publishing.service.gov.uk/media/6a2826256d178a6fb7e31fa0/SoR_TU_Land_Remediation_Relief.pdf
What is Land Remediation Relief (LRR)?
Form of revenue expense aimed for companies to incentive the regeneration of brownfield sites.
Usually, revenue expense allows companies to deduct […]
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Common Mistakes That Lead to Lost Capital Allowances – and How to Avoid Them
For many commercial property owners, capital allowances represent one of the most overlooked forms of tax relief available in the UK. Despite this, substantial amounts of qualifying expenditure are still going unclaimed every year; often because key opportunities are missed during property […]
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The Capital Allowances Due Diligence Checklist for Commercial Property Transactions
Contents
Introduction
What are capital allowances and why do they matter?
Why capital allowances due diligence matters
The Capital Allowances Checklist
1. Review ownership and claim history
2. Identify qualifying expenditure
3. Check pooling requirements
4. Review Section 198 elections
5. Assess unclaimed allowances
6. Analyse transaction documents
7. Consider VAT interaction
8. Engage specialist advice early
9. Align […]
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If you own or invest in commercial property in the UK, you’ve likely encountered the terms capital allowances vs tax depreciation when discussing tax relief on property assets. They are often mentioned together, yet they are not the same thing. In fact, understanding the difference between them can significantly affect how much tax your […]
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Wind Farm: Capital Allowances Case – Supreme Court Judgment of Orsted West of Duddon
Sands V HMRC (Gunfleet Sands)
On 15 April 2026, The Supreme Court ruled unanimously in favour of HMRC’s appeal against
the Court of Appeal’s decision that all environmental surveys and studies qualified for plant
and machinery allowances. The Supreme […]
A Complete Guide to Capital Allowances for Property Investors in 2026
Why capital allowances matter in 2026
Capital allowances are one of the most powerful (yet consistently underutilised) tax reliefs available to UK property investors. In 2026, as investors navigate higher borrowing costs and increased scrutiny from HMRC, capital allowances have moved from being a […]
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New first-year allowance and main rate of writing-down allowances
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Realbuzz Group Ltd v HMRC [2025] UKFTT 493 – What It Means for Capital Allowances
Although the recent First-tier Tribunal decision in Realbuzz Group Ltd v HMRC [2025] UKFTT 493 (TC) focused on Research and Development (R&D) tax relief, it highlights important points that could apply to other areas of tax relief. In particular […]
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VOA to Merge with HMRC – What It Means for Capital Allowances
On 28 April 2025, the UK Government announced that the Valuation Office Agency (VOA) will be absorbed into HM Revenue & Customs (HMRC) by April 2026. This move is part of a broader effort to cut inefficiencies and modernise public services.
