Capital Allowances are a tax relief on the acquisition of certain fixed assets. The relief has the effect of reducing the cost of those assets.
In a great number of instances identifying fixed assets qualifying for capital allowances is simple.
It doesn’t take any real expertise in identifying an item of machinery, for instance, or a computer or a motor vehicle. But, when it comes to commercial property, it is a very different matter.
Capital Allowances are overlooked across all property sectors due to the failure to identify opportunities to claim them, inadequate contract wording, and the lack of information passed across from previous owners.
Many businesses are unaware that they may be entitled to claim tax relief against a proportion of the purchase consideration of a commercial property. But, even if they are, the real difficulty arises firstly, in identifying the component parts of the building to determine which parts qualify for capital allowances. And, secondly, in ascribing a value to each component part to maximise the amount of tax relief to be claimed.
Let’s be honest, Accountants are not best placed to neither carry out site surveys nor pore over drawings and bills of quantities. This is best left to property experts and we are now partnered with Veritas Advisory for this reason.
The Directors of Veritas Advisory are all members of the Royal Institute of Chartered Surveyors who specialise in capital allowances on commercial property. Whether your business is buying, improving or selling a commercial property, they have the expertise to identify and value both the qualifying and non-qualifying components of the property, the land, and the plant and machinery as well as a full tax history of the building.
Initial desktop reviews on legal entitlement to claim and estimates of tangible savings are undertaken at no cost to our clients to establish the potential benefit of claiming.
The combined expertise of Chartered Accountants and Chartered Surveyors ensures tax relief on commercial property expenditure is maximised for our clients.