Blog

Tax Allowances for Commercial Property

As the end of the financial year approaches, it’s obviously worth double-checking that your business will receive all the tax relief it’s entitled to….

A particularly complicated and specialised area - which can sometimes be overlooked - is Capital Allowances on commercial property. One of the elements of Capital Allowances which attracts tax relief is the not-very-concisely-named ‘eligible embedded capital expenditure.’

This all-embracing term includes such items as air conditioning plant, electrical installations, sanitary ware and even kitchen fittings. It’s not automatic – various criteria have to be met - which is why our Afford Bond experts work alongside Chartered Surveyors dedicated to this aspect of commercial property to help identify costs which can constitute valid claims to HMRC.

And it can be high value - for one of our commercial property investor clients (with a property portfolio worth in excess of £20 million) we have been able to help the company reduce its corporation tax liability by around £64,000 a year.

In fact, claims of up to £200,000 can be made in certain circumstances. If you think you may have a possible Capital Allowance claim to make, especially for 'eligible embedded capital expenditure', why not give us a call?

A quick chat on the phone is probably all it will take to establish if we can help you identify a new source of tax relief. Afford Bond are Cheshire's leading Chartered Accountants and tax experts with offices in Nantwich, Wilmslow and Chester – our key competences are accounts, audit, taxation, payroll and corporate finance and we see constant overlap in the delivery of these services demonstrating the need for qualified and experienced advisors.