Many businesses are missing out on Capital Allowance tax reliefs that they could be claiming.

Capital allowances are an effective way of reducing the after-tax cost of buying plant, equipment, fixtures and fittings, acquiring buildings, fitting out or refurbishing property. Companies will normally take advantage of the Annual Investment Allowance, however they often overlook the 150% first year allowances that can be obtained on land remediation relief, common in many new residential and mixed use projects.

In our experience, expenditure on property is one of the most important areas in which capital allowances need to be carefully considered e.g. typically, 30-40% of expenditure on new office builds can qualify for capital allowances.

In addition, HMRC have recently introduced tax legislation that if not considered at the time properties are acquired or sold, could lead to unexpected tax costs. In our experience, many businesses either do not claim all of the capital allowances to or other tax reliefs to which they are entitled or miss a tax opportunity when they acquire a property.

How can we help you?

We add value by working closely with business owners to fully investigate the capital expenditure or the development being undertaken, to maximise capital allowance claims. Our aim is to reduce the after-tax cost of the investment.

The key to a successful capital allowances claim is to look beyond the clearly identifiable fixtures within a large capital expenditure programme or property development and to fully understand how the fixtures will be incorporated within the building and the importance of those fixtures to the business. Our team will work closely with businesses to ensure that the tax reliefs are maximised either in an existing development or a new property acquisition.

If you would like to discuss further how we can help with any of the above, contact us by clicking here or alternatively contact a member of the team.