• Capital allowances

    Benefiting from capital allowances

Capital Allowances

Capital allowances are a highly effective way of reducing the after-tax cost of buying plant, equipment, fixtures and fittings, and acquiring, building, fitting out or refurbishing property.

Expenditure on property is one of the most important areas in which capital allowances need to be carefully considered. Typically, 40% of expenditure on new office builds can qualify for capital allowances, increasing to 80% for office refurbishments and 95% for retail and leisure fit-outs. 150% first year allowances can be obtained on land remediation relief, common in many new residential and mixed use projects.

However, many businesses do not claim all of the capital allowances or other tax reliefs to which they are entitled.

 

How can we help?

We add value by working closely with our clients' management, finance and technical teams to fully understand the entire process of the development being undertaken.

The key to a successful capital allowances claim is to look beyond the clearly identifiable fixtures within a property development and to understand how the fixtures will be incorporated within the building and the importance of those fixtures to the business of the building owner and / or occupier. We can not only search out the qualifying fixtures but we can help the designers to incorporate these fixtures in such a way that a greater proportion of the development becomes entitled to tax relief through Capital Allowances.

 

What do we do?

Our dedicated Capital Allowances team is led by specialists with dual expertise and extensive experience in both tax accounting and quantity surveying.

Our claims are prepared using methodologies and formats familiar to HM Revenue & Customs (HMRC). Our understanding of the building process and the technologies that form part of that process, together with our expertise in the application of tax legislation and excellent working relationships with HMRC result in the successful, timely and cost-efficient agreement of claims.

Our services range from tax planning advice at the inception of projects through to the preparation of detailed capital allowances reports, claims and elections and subsequent negotiations and agreements with HMRC.

Our services include:

  • Preparation of detailed capital allowances reports, claims and elections for purchases of second hand buildings, new build, fit-out and refurbishment projects
  • Property portfolio and historical claim audits
  • Preparation of capital allowance reports to preserve future entitlement, following 2014 legislation changes
  • Enhanced capital allowances claims – 100% WDAs on energy and water efficient equipment and repayable credits, for UK companies where the allowances create a loss
  • Land Remediation Relief claims - 150% relief on construction work relating to the remediation of land and buildings and repayable credits where the allowances create a loss
  • Negotiations and agreement of claims with HMRC • Business premises renovation allowances – 100% relief on renovating disused commercial premises located in designated areas
  • Enterprise Zones
  • Advice on contract negotiations for sellers and purchasers
  • Advice on contract wording to maximise entitlement to Contribution Allowances
  • Planning and design audits at project feasibility stage to maximise allowances
  • Portfolio sample analysis and agreement of percentages with HMRC
  • Preparation of pro-forma documentation for ongoing refurbishment, maintenance and build programmes.
  • Advice on specialist areas such as finance leases, Long Funding Leases and the Energy Service Providers regime.