Property capital allowances calculator, 2026/27
Commercial landlords and owner-occupiers can often claim capital allowances on fixtures and the building shell that residential landlords cannot. Enter your spend to see the likely 2026/27 allowance split between plant and machinery and structures.
The property capital allowances calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Assumes the Annual Investment Allowance of £1,000,000 is fully available and unused elsewhere in the same period. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under corporation tax & limited company. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
Total year 1 allowances
Annual Investment Allowance used
Up to £1,000,000 availableStructures and buildings allowance
3.0% a year, straight lineCorporation tax saved this year
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
Fixtures and integral features such as electrical systems, heating, lifts and fitted kitchens in a commercial property usually qualify as plant and machinery. The Annual Investment Allowance gives a 100% deduction on the first £1,000,000 of such spend in a year, with anything above that going into the main pool for an 18.0% writing-down allowance.
The structure of the building itself, walls, floors, roof, does not qualify for plant and machinery allowances but can qualify for the structures and buildings allowance at 3.0% a year on a straight-line basis, provided the contract for construction or renovation was entered into after 28 October 2018 and the building is used for a qualifying commercial purpose.
The combined first-year saving in this calculator adds the AIA, the first year of main pool writing-down allowance, and the first year of structures and buildings allowance together, then applies the company's marginal corporation tax rate to show the cash tax saving.
Commercial versus residential property
These allowances are only available on commercial property, or the commercial part of a mixed-use building. Furnished residential lettings cannot claim plant and machinery allowances on fixtures inside individual dwellings, though the replacement of domestic items relief covers like-for-like replacements instead.
Furnished holiday lettings historically had access to capital allowances in a similar way to commercial property, but that separate tax status was withdrawn from April 2025, so allowances on holiday lets should be reviewed carefully against current rules.
Getting a proper allocation
On a property purchase, the price needs to be split between land, structure and qualifying fixtures, usually via a capital allowances survey or apportionment agreement with the seller under a section 198 election, otherwise fixtures allowances can be permanently lost.
For a new build or major renovation, keep a clear cost breakdown from the contractor from the outset so that the structures and buildings allowance and any plant and machinery elements can be identified without a costly retrospective survey.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
Can a residential landlord claim these allowances?
No. Plant and machinery and structures and buildings allowances are for commercial property. Residential lettings cannot claim capital allowances on fixtures inside dwellings, though replacement of domestic items relief is available instead.
What is the structures and buildings allowance rate?
The rate is 3.0% a year on a straight-line basis, meaning it takes 33⅓ years to relieve the full qualifying cost, and only applies to construction contracts entered into from 29 October 2018 onwards.
Do I need a survey to claim fixtures allowances on a purchase?
Usually yes for anything beyond a straightforward new-build purchase. A capital allowances survey identifies and values qualifying fixtures, and a section 198 election with the seller is often needed to fix the amount that can be claimed.
Does the Annual Investment Allowance cover the building structure?
No, the AIA only applies to plant and machinery, such as fixtures and equipment. The building's structure is relieved separately, if at all, through the structures and buildings allowance.
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