How Momentum Tax Group Helps Hospitality Businesses Unlock Hidden Capital Allowances

Hospitality businesses across Northern Ireland have recently received a short-term reprieve from immediate increases in non-domestic rates. However, for many operators, this relief is temporary. Rising property valuations, inflationary pressure and escalating operating costs mean fixed overheads remain a significant concern.

While business rates themselves may feel unavoidable, there is a structured and highly technical way to improve cash flow: identifying and claiming embedded Capital Allowances within commercial property.

At Momentum Tax Group, we apply a technical-first methodology to ensure hospitality businesses unlock legitimate, defensible tax relief — improving resilience in a rising cost environment.

Why Hospitality Businesses Are Disproportionately Exposed

Hotels, restaurants, bars and pubs are inherently asset-intensive environments. To remain competitive, operators invest heavily in:

• High-spec commercial kitchens
• Integrated bar and cellar systems
• Complex mechanical and electrical installations
• Ventilation and extraction systems
• Frequent refurbishments and rebrands

These investments enhance customer experience — but they also contribute to increased rateable values.

What is often overlooked is that a substantial proportion of this embedded expenditure may qualify for Capital Allowances. When correctly identified and analysed, this can translate into significant tax relief.

The challenge? Much of it is hidden within construction and refurbishment costs.

The Hidden Capital Inside Hospitality Premises

Embedded Capital Allowances relate to qualifying plant and machinery contained within the fabric of a commercial property.

In hospitality settings, this frequently includes:

• Heating, ventilation and air-conditioning systems
• Electrical and specialist lighting installations
• Fire alarms, life-safety and security systems
• Commercial kitchen equipment and extraction
• Cellar cooling, beer line systems and cold rooms
• Water systems, sanitary installations and drainage
• Integral features embedded within the building structure

These assets are rarely itemised clearly in historic invoices. As a result, many businesses either never claim or significantly under-claim the relief available.

A technical-first review is critical.

A Technical-First Capital Allowances Methodology

Momentum Tax Group applies the same technical-first discipline to Capital Allowances as it does to R&D tax claims.

We do not start with costs.
We start with technical qualification.

Our specialist process includes:

• Detailed on-site or desktop property analysis
• Forensic review of construction documentation
• Technical identification of qualifying plant and integral features
• Precise cost apportionment aligned with HMRC legislation and case law
• Full collaboration with the client’s accountant

This ensures claims are:

• Accurate
• Robust
• Fully evidenced
• Defensible under HMRC scrutiny

In an environment of increasing compliance oversight, this distinction matters.

Why This Matters in a Rising Rates Environment

Capital Allowances do not directly reduce business rates. However, they materially improve cash flow by:

• Reducing corporation tax or income tax liabilities
• Bringing historic expenditure into current relief
• Strengthening short-term liquidity
• Creating financial headroom to absorb rising fixed costs

For hospitality operators facing higher property overheads, this can rebalance the financial equation without cutting staff, reducing service levels, or deferring investment.

Unlocking Value in Older and Acquired Properties

Many Northern Ireland hospitality businesses operate from:

• Long-held properties
• Older premises with multiple refurbishments
• Buildings acquired from previous owners

In many cases:

• Historic allowances were never claimed
• Embedded fixtures were not transferred correctly on purchase
• Qualifying expenditure remains permanently unrelieved

Where conditions are met, a structured technical review can identify allowances that would otherwise remain lost.

Timing is critical — particularly where transactions are involved.

Compliance, Collaboration and Risk Protection

Momentum works alongside accountants — not around them.

Our role is specialist and technical, ensuring:

• Clear professional boundaries
• Accurate legislative treatment
• Reduced HMRC enquiry exposure
• Fully documented supporting evidence

We prioritise compliance over inflated projections.
We prioritise defensibility over aggressive positioning.

For professional advisers and property-owning businesses alike, this protects both financial outcomes and reputation.

Turning Fixed Cost Pressure into Opportunity

Rising business rates are a reality.

But historic capital investment within hospitality properties often represents untapped financial opportunity.

A technical-first Capital Allowances review can:

• Convert past expenditure into present-day tax relief
• Improve resilience without operational compromise
• Support reinvestment and future growth

When delivered properly, it is not a tax “scheme” — it is structured, compliant tax legislation applied correctly.

How Momentum Tax Group Can Help

If rising business rates are impacting your hospitality business, a specialist Capital Allowances review may uncover significant embedded tax relief.

Momentum Tax Group offers a free, no-obligation review or second opinion.

If you'd like a no-obligation review or just a second opinion on your tax incentive claims, contact Momentum Tax Group on:

If you'd like a no-obligation review or just a second opinion on your tax incentive claims, contact Momentum Tax Group on Head Office +44 (0) 28 9140 4030 / Dublin +353 (0)1 265 4090 or email tax@momentumtaxgroup.com