+44 (0) 20 7329 1300

Wind Turbines and Capital Allowances


Wind farms can be a lucrative source of income, but in order to make the most of this income it is important to protect the tax position by claiming capital allowances. A high percentage of wind turbine construction expenditure qualifies for capital allowances. However, due to their specialist construction, the full extent of the allowances available may not be fully identified by non specialist advisors.

Onshore-Windpark Westereems (NL)

Key areas to be aware of that Lovell Consulting can assist with:

Segregation of Costs

It is unlikely that all capital costs relating to the construction of wind farms will qualify for capital allowances. This is because additional structures like substations, offices, new roads are also constructed. It is therefore essential that the costs are carefully segregated and apportioned between the relevant capital allowances pools. Frequently the costs are not broken down to the level required, therefore an expert with surveying skills is required to break down the costs to their component parts. The benefit of segregating the costs is in increasing the expenditure that qualifies and increasing the rate at which the allowances are realised.

Associated Costs

Costs in connection with installing turbines, for example, turbine bases or widening a road can be particularly complicated to claim, as they could be considered to be property improvements or too remote to be seen as incidental. Recent case law such as B & E Security Systems v HMRC Commissioners [2010] and HMRC’s capital allowances manual provide guidance regarding incidental costs. However, specialist capital allowances knowledge is then required to apply this to a windfarm.

A well presented capital allowances report is needed to claim the majority of the expenditure as either plant, or incidental to the installation or acquisition of the plant.

Foote Creek Wind Farm and Elk Mountain

Long Life Assets

Wind turbines can be categorised as general plant i.e. have a write down allowance of 18% per annum. However, if an item of plant has an anticipated economic life of more than 25 years it is considered to be a long life asset and has a write down allowance of 8%. It is therefore important that a specialist reviews all relevant information to ensure they have proof that the turbines are not long life assets.

Enhanced Capital Allowances

Wind turbines, unfortunately, do not qualify for enhanced capital allowances as they are energy generating rather than energy saving. However, certain component parts of the turbine, for example the motors, may qualify and we have the knowledge and experience to identify these items. These greatly increase the rate at which tax relief is given at 100% wda compared to 18% wda.


A grant may have been received for part of the installation works. It is important to understand how this grant should be treated for capital allowances. Early capital allowances advice whilst drafting grant contracts will be helpful to ensure this is agreed with the grant provider.

Lease agreements/licences

There may be a division between the land owner and the wind farm operator. Before this contract is finalised it is important to get capital allowances advice to determine who will be eligible to claim the allowances.


Recommended Approach

It is recommended to use a specialist capital allowances firm to extract all the available allowances. Lovell Consulting has significant experience in windfarms and understands the legislation and case law in order to identify the more unusual claimable items. We also provide capital allowances contract wording for grants and leases.

Lovell Consulting can add significant value where information is missing or difficult to obtain. As a dual qualified team in tax and surveying, we are able to break down costs and value qualifying items.

Back to News


Lazarus 2

The Lazarus Impact – Making Very Late Capital Allowances Claims

OTS Photo

OTS – Report on Proposed Capital Allowances Simplification

Lovell Coffee Seminar May & June 2018

New Capital Allowances CPD Seminar Dates


Capital Allowances within Commercial Sale and Purchase Contracts


OTS Review on Capital Allowances and Accounts Depreciation


20 Years of Capital Allowances


Lovell Consulting Capital Allowances Student Prize Winner 2017


Pension Funds and Capital Allowances Interactions


Lexis Nexis Webinar – Capital Allowances in 2017


Capital Allowances and Demountable Partitions; To Move or Not to Move?


Employees Claiming Capital Allowances: Caravan Case Demonstrates Hurdles!


Capital Allowances, Corporation Tax Loss Relief & Interest Deductions – Act Now


Corporation Tax Loss Relief & Interest Deductions: Capital Allowances


Capital Allowances, Trustees and Tax Havens


Interview: A Little Capital Allowances Knowledge Can Be Dangerous


MBL Seminar Dates Announced (Capital Allowances in Retail, Hospitality & Offices)


2016 Lovell Consulting Capital Allowances Art Prize Voting Begins


Capital Allowances in the Retail Sector

Palm with a plant growng from pile of coins

Free Cash, Tax Savings & Capital Allowances for SMEs Going Green


Student Accommodation & Capital Allowances


Lovell Consulting Capital Allowances Student Prize Winner 2016


Capital Allowances within Offices

MBL Webinar

MBL Webinar – Capital Allowances for Property Surveyors


Capital Allowances & Data Centres


Tax Journal Interview: One minute with…John Lovell, Capital Allowances Specialist


Claiming Capital Allowances and / or Repairs


Commercial Property Standard Enquiries: Capital Allowances

New Picture (54)

LexisNexis Webinar – Tax for General Practice & Capital Allowances


Artful Plant: When Capital Allowances may be Claimed on a Painting

New Picture (44)

LexisNexis Webinar – Commercial Property Law & Capital Allowances


New Capital Allowances Team Appointment – Glenn Ramos

New Picture (48)

MBL Webinar for Property Lawyers and Tax Advisers (Capital Allowances)


Fundamental Changes to Interest Deductions & Impact for Capital Allowances

playground-99509_960_720 - Copy

Capital Allowances within Childcare Facilities & Schools


John Lovell Comments: 2016 Budget – Impact on Capital Allowances: Commercial Property


Capital Allowances Team Announcements


Better Call Lovell for Capital Allowances


Lovell Consulting Capital Allowances 2015 Art Prize


LexisNexis Capital Allowances Webinar with John Lovell & Ronak Shah


Plant in Garden Centres: Claiming the Right Kind for Capital Allowances


Can an Accountant Claim the Capital Allowances without Specialist Support ?

New Picture (33)b

John Lovell Capital Allowances talk at Chartered Institute of Taxation Conference


Enterprise Zones & Capital Allowances


Capital Allowances & Landlord Contributions to Tenant Fitting Out Works


10 Key Qualities To Look For In A Capital Allowances Advisor


Capital Allowances within Private Member Clubs


Effective Dealing with HMRC for Capital Allowances

Taxation Feedback Article

Taxation Feedback: Capital Allowances


Capital Allowances within Restaurants


Capital Allowances within Nursing Homes

Little Book

Little Book of Big Capital Allowances Savings


Real Estate Investment Trusts: Get The REIT Advice on Capital Allowances

cont land

Contaminated Land – The Big Clean Up for Capital Allowances

New Picture (20)

Capital Allowances & Furnished Holiday Lets


Capital Allowances Hidden Gems within Hotels


Helpful Tips for Claiming Capital Allowances in Tax Returns


Why Do I Need A Capital Allowances Specialist?


Land Remediation Relief & Capital Allowances Q&A

Inspired Capital Allowances Savings_Page_1

Inspired Capital Allowances Savings


Private Rented Sector (PRS) & Capital Allowances: Key Planning Points


Drafting For Purchase Contracts And CPSE Capital Allowances Responses

The Great Hall, University of Reading

Lovell Consulting Capital Allowances Student Prize Winner 2015

George Osborne Summer Budget 2015

Summer Budget 2015: Property Tax Updates & Impact for Capital Allowances


The Benefits of Claiming Annual Investment Allowances


Lawyers Should Seek Specialist Capital Allowances Advice


The New Environment For Capital Allowances

Capital Allowances demolition costs

Capital Allowances – Demolition Costs

Capital Allowances - Asbestos Removal

Capital Allowances – Asbestos Removal

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary: Bowerswood House Retirement Home

wooden-judges-gavel-1024x678 (2)

Property Tax Case Summary: Terrace Hill (Berkeley) Ltd: Impact for Capital Allowances


Business Premises Renovation Allowance (BPRA) Case Summary: Senex Investments

Construction Expenditure image

Capital Allowances Savings for Construction Expenditure


Recent Capital Allowances Case Study

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary – Rogate Services


Lovell Consulting Capital Allowances Student Prize Winner

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary – LLPs and AIA

Kirsty and Mike 2

New Capital Allowances Team Members

See Saw 2-10 (2)

Lovell Consulting Capital Allowances 2014 Art Prize


Recent Lovell Consulting Press Coverage: Capital Allowances


April 2014 Capital Allowances Fixtures Rules


The Budget of 19 March 2014 Announced a Number of Capital Allowances Changes


Capital Allowances Case Update – The Granleys

Holiday Lets 2

Capital Allowances on Furnished Holiday Lets


Capital Allowances Case Update – Wetherspoon


The Budget of 23 March 2012 Announced a Number of Capital Allowances Changes