As a tenant of a commercial property, you may be entitled to claim capital allowances for any capital expenditure you incur in connection with using the property under the lease.
So, if you are leasing a property and are subject to either UK income or corporation tax, you may be able to access the potential tax relief through the capital allowances associated with your capital expenditure.
The typical scenarios where you will be able to claim tax relief are:
- The refurbishment or redevelopment of the property, or
- The fitting out of the property
To maximise your capital allowances position you should consider capital allowances at an early stage of a transaction or redevelopment. Doing this will allow you to plan and enhance the tax relief available to you.
Claiming capital allowances is your statutory right! The benefits of claiming this relief to you are that not only will it will improve the cash flow of your business, lower risk for those supplying loans to the business but may also be used as a means to preserve and enhance the value of your asset.
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 tenants download our guide.