Capital Allowances on Property

Capital allowances are a valuable form of tax relief available to anyone incurring capital expenditure buying or building commercial property. They significantly boost the post-tax yield on an investment.

Capital allowances and related reliefs are available when:

• Commercial property is acquired for investment or occupation
• Commercial new-build, extension or fitting-out/refurbishment works are undertaken
• Business equipment is purchased
• Contaminated land or buildings are cleaned-up
• Research and development is undertaken, or R&D facilities are bought or built

Capital allowances are a tax adjustment only and have no effect on the profits shown in a business's financial accounts or on the market value of property.

Claiming capital allowances will not increase any capital gain if the property is ever sold.

Our services include:

• Preparing and agreeing capital allowances claims to maximise tax savings:-
• New build and refurbishment projects
• Property acquisitions
• Research & development tax relief and capital allowances.
• Resolving HM Revenue enquiries into capital allowances claims
• Enhanced capital allowances reviews to accelerate tax savings for energy-saving and water-conserving/quality-improving plant
• Long-life asset reviews to minimise expenditure potentially qualifying for tax relief at a reduced rate
• Evaluating and designing documentation and systems for efficient expenditure recording and reporting - ideal for owners of multiple similar properties (for example, retailers)

Thinking in advance about capital allowances can give you the upper hand, and generate additional tax savings.

We can provide:

• Pre-contract enquiries and estimates of allowances
• Acquisition and sale contract advice and negotiations
• Entitlement reviews (to ensure a capital allowances claim is legally possible)
• Advice on how to tax-efficiently structure financial contributions from third parties
• Valuations and purchase price allocations for capital gains tax and stamp duty land tax ('SDLT') purposes, e.g. between land/fixtures and chattels/goodwill