Claiming capital allowances is your statutory right. There are many benefits to claiming this tax relief for you, not only will it improve the cash flow of your business, lower risk for those supplying loans to the business but may be used as a means to preserve and enhance the value of your asset.
Commercial landlords and property investors who are subject to either UK income or corporation tax are able to claim property tax relief using capital allowances in the following circumstances:
- The acquisition of the property;
- The refurbishment and fitting out of the property and
- The contribution to the fit out of a tenant’s business
Considering capital allowances at an early stage in either a transaction, redevelopment or lease incentive will provide you with the opportunity to maximise your capital allowances position.
In addition, should you be considering taking on or granting a long funding lease, granting a long leasehold interest out of a heritable title or freehold interest or a sale-and-leaseback transaction consideration should be given to capital allowances as these property transactions will have implications on the amount of capital allowances that can be claimed.
Cavetta Consulting, can guide you through the capital allowances advantages and pitfalls, around these types of transactions. For more information on capital allowances for commercial landlords or property investors download of guide.