Senior consultant, Phil O’Connor, has been featured in Insider Ireland discussing the benefits of claiming tax relief on commercial property purchases in the Republic of Ireland.
He outlines that most investors that acquire commercial property in Ireland are unaware of their entitlement to claim tax relief on a large proportion of their capital expenditure, which on Wear and Tear Allowances for instance, could be over 30 per cent of the purchase spend.
To ensure that they receive this, investors should make a claim by inserting the figures identified in a professional valuation into their tax return, which serves to justify the tax relief claimed should the Office of Revenue Commissioners enquire.
Phil says: “The professional valuation methodology accepted by Revenue involves the preparation of a so-called “just apportionment” split of the purchase price paid for the property and requires the valuation of individual components of the property purchase price, including the land, the building fabric and the plant and machinery within the building. As such, a specialist capital allowances valuation can be quite a complex exercise but is well worth doing to ensure that all tax relief to which you’re legitimately entitled to claim is identified and submitted to Revenue with confidence.”
You can read Phil’s full article on claiming tax relief here.