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
