Tax Depreciation

Tax depreciation helps businesses unlock cash flow benefits by aligning tax relief with capital investment in fixed assets. In the UK, the primary mechanism of tax depreciation are capital allowances.

Capital allowances are a key incentive used by the UK government to encourage investment in capital assets. However, they remain a complex and evolving area of UK taxation, shaped by frequent legislative changes, court rulings, and interpretative challenges. As a result, applying them correctly requires specialist expertise tailored to the specific circumstances of each business.

At the same time, the digitisation of finance, tax and property functions is adding a new layer of complexity. For businesses with significant fixed assets, the evolution presents both challenges and opportunities in maintaining an efficient and future-ready capital allowances approach. 

FTI Consulting’s Tax Depreciation team is a market leader with a proven track record of delivering tangible savings and value for clients. Our independent experts bring deep technical tax and construction knowledge and a commercial mindset to each engagement, ensuring cost effective solutions are delivered on time. High quality client service is at the core of our approach, with senior experts performing a hands-on role throughout all aspects of the engagement. 

Our team includes experts with over 25 years of experience, providing tailored advice on a wide range of property developments, transactions and asset acquisitions – from the straightforward to the highly-complex. We combine deep expertise across tax, technology, and construction with a team that includes dual-qualified Chartered Tax Advisors, Chartered Quantity Surveyors and Chartered Accountants. 

We also collaborate with our Data & Analytics experts to leverage advanced technology, delivering innovative, data-driven solutions that drive efficiency, reduce risk, and strengthen capital allowances processes that are capable of bringing wider benefits to finance and property departments. 

Our clients include a diverse range of organisations, from FTSE 100 and FTSE 250 companies to institutional investors, asset managers, private property companies, and family offices. 

How We Help 

Some of the areas in which our Tax Depreciation team can help include:  

• Specialist Advisory: Real estate transaction advisory, technical capital allowances opinions, and specialist surveying expertise – such as building replacement cost estimates and land valuations for tax purposes. 
• Automation and Digital Services: We partner with FTI Consulting’s Data & Analytics experts to deliver tailored solutions that help in-house tax functions in effectively managing capital allowances. Our technology-agnostic approach ensures we provide independent advice on the most effective technology strategies.
• Fixed Asset Process Improvement: End-to-end design, implementation, and training for fixed asset processes, ERP transitions, and upgrades following legislative changes. 
• Compliance: We work closely with FTI Consulting’s Corporate Tax Compliance and Advisory team, as well as third-party tax advisors, to deliver integrated support. In addition to preparing capital allowances claims for inclusion in company tax returns, our services encompass tax forecasting, claim preparation, and strategic tax planning.