What are Capital Allowances?
Our experience of reviewing potential clients financial statements is that one of the largest and most obvious assets, being property, is often overlooked for claims allowed within the Taxes Act. We describe a property to our clients as a structure in which integral features pulse.
Buildings contain such functions as heating, lighting, lifts, roller shutter doors, air conditioning systems and the like, all of which can yield perfectly legitimate tax claims which are so often overlooked.
It is sometimes the elephant in the room that is ignored and yet the tax efficient benefits can be substantial. It is being awake to these opportunities that allows us to provide a strong service to our client base.
VALUE OF A CAPITAL ALLOWANCE CLAIM
On average, a capital allowances claim undertaken by us results in you receiving a tax saving related to your portfolio’s purchase consideration. The value of the tax saving is affected by the types and sizes of buildings being claimed upon as well as the effective tax rate of the legal owning entity.
Any business or individual owning, building or refurbishing commercial property can gain significant value from claiming capital allowances.
The value of capital allowances varies according to the nature of the property and are typically relevant for buildings such as:
- Office Buildings
- Industrial Buildings
- Hotels and pubs
- Care homes and Supported living premises
- GPs, dentist and physiotherapy practices
- Retail units
- Furnished Holiday Lets