How can I claim Capital Allowances on a Commercial Property?

Do you own a commercial property or have you got a furnished holiday let?  Capital allowances for commercial property are a treasured form of tax relief. You don’t need to worry about how long you have owned the property, or if you built it, you will still be able to claim.  All properties are included across the commercial sector and the relief you can achieve frequently comes back in the form of a substantial rebate and an ongoing reduction in your tax bill.

It doesn’t matter whether you own the property either privately or as part of a limited company, or even when you purchased the building. At Areande they will help to find

allowances and you will be able to use them against your profits straight away. This is the reason it is such a highly valuable form of relief.

Knowledge

Areande are a modern, dynamic, innovation tax relief company, who aim to demonstrate their ability and knowledge to their clients. A team of experts in Areande claims, means clients can leave the claiming to us while you focus on innovating. Their aim is to reduce your costs in relation to preparing these claims and ensure you get the commercial property capital allowances you are owed. 

Tax Legislation

It is fair to say that tax legislation covering commercial property capital allowances are complicated. The principles to determine what you are eligible for and how items of expenditure are embedded in case law. This can be problematic when you are trying to understand your eligibility and it becomes more complex by vague or unobtainable building documentation which makes it hard to devise a comprehensive claim and gain the full tax relief due. It is important to seek professional knowledge so you can guarantee the key information and documentation is attained and properly understood so that all qualifying assets are acknowledged.

Eligible Expenditure

The greatest failure in identifying eligible expenditure happens when commercial property owners do not recognise items of plant and machinery in buildings which they own. Plant and machinery assets which make up the fundamental construction of a commercial building include heating/cooling systems, emergency lighting, security systems and sanitary ware etc. Usually, these costs are not separated from the building cost and are implicit to freehold additions with no allowances claimed.

Common Misconceptions

The main misconceptions are that commercial property capital allowances should be attained when the cost is suffered. This isn’t the case. It is achievable to claim tax relief for expenditure dating back to when the property was first purchased.  In the majority of circumstances, it is possible to claim any missed allowances even going back several years, frequently to when the property was initially attained and for items which were not considered to qualify at the time. Basically, there is no exact time frame for this as long as the items are still in use for the purpose of the trade.

Summary

Capital allowances are available to whoever is incurring capital expenditure either buying or building commercial property or furnished holiday lets. You can claim these capital allowances on various purchases or investments. They will be deducted by a proportion of these costs from your taxable profits to reduce your tax bill. It is important to ensure all tax relief forms are filled in correctly and seeking professional expertise is vital. Find out how Areande can help today.