Capital allowances are a key tax planning consideration
Watch our short video for an explanation of what capital allowances are and why they matter:
Whether you acquire and manage commercial properties, develop new schemes or occupy and refurbish, capital allowances on a property purchase could yield a cash benefit of up to 20% of the total purchase price or a refurbishment return 40% of the total expenditure. Energy and water efficient technology can yield a 100% write-off in the year of expenditure or a 19% tax credit if the expenditure creates a loss.
How we help
For over 20 years we have provided robust and commercially astute advice as part of a comprehensive service to achieve optimum results on behalf of our clients. Our capital allowances service for all property investment includes:
- Assessment of refurbishment and new construction projects to understand the availability of plant and machinery allowances and other tax reliefs
- Pre-contract advice on purchases to ensure unclaimed allowances are identified and dealt with effectively
- Historical reviews of property portfolios to capture latent capital allowances
- Working with Gateley’s tax team to explore wider implications and opportunities arising from property investment
- Providing advice to our clients and their advisors on the disposal of property to ensure future tax relief is not surrendered unnecessarily
With yields constantly changing and legislation restricting the use of historical losses and interest payments to mitigate tax, involving a specialist to maximise capital allowances arising from property investment can be a crucial part of improving cash flow for reinvestment.