Property developers hold the developments that they construct on trading account as development stock.
As such, they cannot claim capital allowances. So why should capital allowances be an issue for them? The simple answer to that is that they are not. However, when considered from the perspective of a potential purchaser, they may well be.
For example, if a developer is constructing a building for a specific client who has specified that they want a BREAAM excellent rated building, they may achieve that in a variety of ways. However, if they incorporate energy and water saving technologies into the scheme and the products that they specify are on the Department for Energy & Climate Change (DECC) Energy Product Technology List, the purchaser of the building will be able to claim 100% Enhanced Capital Allowances for those items.
Alternatively, a developer may have speculatively developed a property with a view to sale. That property will undoubtedly contain items qualifying for capital allowances and if identified to a prospective purchaser will make the sale a more attractive proposition.
The message is that, whilst developers cannot claim capital allowances themselves, they have an intrinsic value to a purchaser of the property and for that reason alone, should not be overlooked and given active consideration.