Capital Tax Allowances

Throughout the property lifecycle the potential benefits available through maximising tax relief on capital expenditure should not be overlooked. Capital allowances are important to any owner, investor, occupier or tenant that incurs capital expenditure on property. The allowances can be off-set against the individual’s or company’s tax liability and therefore assist in maximising the value derived from a property transaction and reduce overall costs in new build, refurbishment / conversion and fit-out construction projects.

P H Warr plc can assist property purchasers as part of their due diligence by investigating the capital allowances history of the building and thereby ensure that the transaction value is optimised. In addition to determining the elements of qualifying expenditure, P H Warr plc can arrange for the previous taxation calculations to be reviewed thereby ensuring that detailed advice on the potential gains that can be achieved, and how they should be negotiated with the Inland Revenue, is provided.

On new build projects P H Warr plc advocate a value engineering process at both the early and detailed design stages whereby the proposed construction method can be thoroughly appraised. In reviewing the proposed design at the earliest possible opportunity we can ensure that potential savings are maximised and that the benefits derived from the allowances are fully considered within the finalised specification.

Refurbishment / conversion and fit-out projects by their very nature tend to involve a greater level of expenditure on elements which qualify for capital allowances. In addition, allowances may also be claimed in relation to remediation costs for contaminated land which in the continuing drive for urban and Brownfield regeneration can be significant.

By working together with leading Chartered Accountants, P H Warr plc can assist in assessing and maximising the qualifying expenditure for capital allowances and proactively negotiate and agree any entitlement with the Inland Revenue.