Where a property is held by you for occupation or investment, and you are subject to either UK income or corporation tax, you are able to claim property tax relief in the following circumstances:
- the acquisition of the property;
- the refurbishment or redevelopment of the property;
- the fitting out of the property, and
- contributions towards your tenant’s fit out costs.
Considering capital allowances at an early stage of a transaction, development or lease incentive will allow you to maximise your capital allowances position and manage your exit strategy.
Claiming capital allowances is your statutory right. The benefits of claiming this relief are that it will improve the cash flow of your business, lower risk for those supplying loans to the business and may be used as a means to preserve and enhance the value of your asset.
For more information on capital allowances for property developers download our guide.