Wear and tear allowances on property purchases and capital projects
Wear and tear allowances are available where expenditure is incurred on plant and machinery within commercial and residential investment property.
Relevant expenditure includes property purchases and expenditure on capital projects such as developments, refurbishments and fit-outs.
For property purchases, it is possible to aportion the total value of plant and machinery to the purchase price paid, subject to satisfying the relevant entitlement criteria.
Our approach involves undertaking a detailed analysis of the legal documentation, establishing a reasonable basis for entitlement and identifying the qualifying elements of the property purchase and preparing a maximised valuation. Our fully disclosed and transparent valuation reports are in line with Revenue guidelines and fulfil self-assessment requirements for tax returns.
For capital projects, getting us involved at design stage ensures that wear and tear allowances and in particular accelerated capital allowances are maximised. We can also act retrospectively and in many cases, considerable tax relief can be achieved through the analysis of historical expenditure.
Our approach involves collating and analysing relevant construction and accounting information and by undertaking an in-depth analysis, we identify and maximise expenditure qualifying for tax relief. Where construction information is not readily available, we can supplement this with our own construction measurement and pricing data using our property surveying expertise.
To ensure an audit trail, our final claim document is reconciled to our client’s accounts and we employ a methodology which is fully in line with The Office of the Revenue Commissioners guidance.
How we can help
We advise on the following:
- Purchase and sales
- Construction and refurbishment
- Hotels and industrial buildings
- Repair expenditure claims
- Tax efficient design
- Historic expenditure reviews
- Review of in-house claims
To get the best result we offer a range of specialist skills and experience, with many of our expert professionals possessing dual tax and surveying qualifications. Our clients appreciate our robust, low-risk approach that maximises capital allowances with a cash-generative service.