(in partnership with Veritas Advisory Ltd)

 

What are Capital Allowances

Capital Allowances is a form of tax relief which provides a cash benefit by reducing the amount of tax payable against income for individuals or profits for businesses.  The tax relief is available for certain property expenditure, such as: Second hand property acquisitions, fitting out property, refurbishment of existing property, extensions to existing property and new build developments.  

 

The Benefit of Capital Allowances

The tax relief claimed creates a cash saving and can be viewed as reducing the cost of those qualifying property assets.  For example:

Typical office refurbishment: £200,000

Eligible expenditure for Capital Allowances £160,000

Tax Cash Saving based on 19% Corporate Tax Payer £30,400

Net cost of the refurbishment £169,600

 

The full tax saving is often taken in the year of expenditure, providing a significant cash flow advantage for clients and individuals alike.

 

Working with Veritas Advisory, we are able to identify and value qualifying Capital Allowances and often work alongside clients and their accountants to ensure this valuable tax relief is fully maximised.  We will prepare individual claim reports on the client’s behalf, (even where the base cost information is limited) and agree the claim with HMRC.

 

Contact Service Charge Associates if you have previously incurred capital expenditure on property over the last 10 years or are planning capital expenditure for which it would benefit having an initial tax planning conversation with our Capital Allowances Specialist.