Over the past decade, London has outpaced every city on earth in commercial property investment, attracting more than £68 billion from private investors. This milestone, revealed in JLL’s latest global real estate report, reaffirms what many in the sector already know — the UK remains a world-class destination for commercial investment, stability, and opportunity.
At HMA Tax, we understand that such confidence in the UK market doesn’t just benefit institutional investors, it creates tangible advantages for commercial property owners across the country, particularly when it comes to Capital Allowance claims.
A Decade of Unmatched Growth and Investor Confidence
The data paints a clear picture: from 2013 to 2024, London led the world, outpacing Hong Kong ($61 billion) and New York ($52 billion) in private investment inflows. In total, the UK market ranked second globally, pulling in an astonishing $155 billion in commercial property investment — second only to the United States.
Such performance underscores a critical reality: despite economic headwinds and rising interest rates, the UK property sector continues to offer long-term resilience and investor trust.
At HMA Tax, we see this as more than a headline, it’s evidence of the underlying strength of the UK’s commercial real estate market, where property ownership continues to deliver both capital appreciation and tax-efficient opportunities for businesses and investors alike.
Prime Property, Prime Opportunity
“Trophy assets” those in prestigious, high-traffic areas with strong environmental credentials — continue to command premium valuations.
Take, for example, the Prada family’s £250 million acquisition of 150 New Bond Street, home to Miu Miu’s flagship store. Deals like this highlight the enduring appeal of quality assets — prime locations, sustainability-focused upgrades, and strong tenancy profiles are all key drivers of market value.
For commercial property owners, these characteristics don’t just enhance resale or rental potential. They can also unlock substantial Capital Allowance claims.
Capital Allowances are a valuable yet often overlooked tax relief designed to help commercial property owners recover the cost of qualifying fixtures and fittings within their buildings. From air conditioning systems to lighting and sanitary installations, these assets can yield significant tax savings — often worth tens or even hundreds of thousands of pounds.
At HMA Tax, our team of Tax Experts and Specialist Surveyors work with owners, accountants, solicitors and investors to identify these embedded allowances and ensure that every qualifying pound is claimed efficiently and compliantly.
A Divided Office Market and a Window of Opportunity
The report also notes a clear bifurcation in the office market. Modern, sustainable offices in central locations remain in high demand, while outdated stock in secondary areas is becoming less attractive.
While this divergence presents challenges for some owners, it also presents an opportunity for strategic reinvestment. Refurbishments, retrofits, and ESG upgrades improve rental yield and can also generate fresh Capital Allowance entitlements.
Whether it’s installing new HVAC systems, upgrading to energy-efficient lighting, or reconfiguring internal layouts, each improvement adds to the potential claimable value, delivering measurable tax relief and a more competitive asset in the marketplace.
Why This Matters Now More Than Ever
In an environment where interest rates have risen and investors are increasingly discerning, maximising the performance of existing assets is essential. The UK’s tax framework, particularly through the Capital Allowances regime, provides property owners with a legitimate, HMRC-approved mechanism to enhance cash flow and improve returns.
At HMA Tax, we’ve helped thousands of UK commercial property owners unlock these benefits, often discovering unclaimed allowances on properties held for years. These claims can make a significant difference, freeing up capital for reinvestment or debt reduction, both crucial in today’s evolving market.
The Broader Picture: Private Wealth and the UK’s Investment Magnetis
Over $1.5 trillion of private wealth has been channelled into commercial real estate globally over the past decade. The UK’s consistent share of this inflow reflects its transparency, stability, and global appeal — qualities that continue to attract both domestic and international investors.
As private capital replaces traditional institutional investment, opportunities are increasing for UK-based property owners and developers to position their assets for this next wave of investment — particularly those who can demonstrate strong ESG credentials and tax-efficient operations.
Capital Allowances sit at the centre of this conversation. Investors are increasingly attentive to net yields and after-tax returns, and the ability to optimise a property’s tax position through Capital Allowances makes it more attractive to future buyers or investors.
At HMA Tax, our role is simple yet powerful: to help commercial property owners unlock the full financial potential of their commercial assets.
Our process combines specialist surveying expertise, tax legislation insight, and industry-leading technology to identify and quantify Capital Allowances quickly and accurately. We’ve worked with properties across every sector, from retail and hospitality to healthcare, industrial, and office, delivering millions of pounds in successful claims.
Every claim is supported by detailed reports, photographic evidence, and legislative references to ensure full compliance with HMRC. We pride ourselves on transparency, accuracy, and reliability, and we work closely with accountants and advisors to make the process seamless.
Frequently Asked Questions (FAQs)
What are Capital Allowances, and how do they benefit property owners?
Capital Allowances enable UK commercial property owners to claim tax relief on qualifying items within their properties, reducing taxable income and improving cash flow.
Does my property qualify for a Capital Allowance claim?
Most commercial properties, including offices, retail units, warehouses, and care homes qualify. If your property contains embedded fixtures such as heating, lighting, or electrical systems, you likely have a claim.
Can I claim on a property I purchased years ago?
Yes. Claims can often be made retrospectively, provided the property is still owned and used for a qualifying commercial purpose.
How does HMA Tax help identify eligible assets?
Our expert surveyors inspect each property in detail, identifying qualifying items and calculating their value according to HMRC-approved methodologies.
Is the process complicated or time-consuming?
Not at all. HMA Tax manages the entire process, from survey and valuation to claim submission, making it simple and stress-free for our clients.
How much can I typically claim?
The value varies by property, but it’s common for claims to equal 20-40% of the purchase price. Many clients receive substantial tax refunds or ongoing relief
London’s dominance in global property investment is more than a headline — it’s a signal of confidence in the UK market’s resilience and appeal. For commercial property owners, it’s also a timely reminder to ensure that their assets are performing as efficiently as possible — both operationally and from a tax perspective.
At HMA Tax, we turn opportunity into outcome, helping commercial property owners claim untapped allowances into measurable financial advantage.
If you own or advise on a commercial property in the UK, now is the time to speak to our team and discover how a Capital Allowance claim could strengthen your investment position.
