How Capital Allowances Could Be Used to Improve Infrastructure and Commercial Property in Smaller Towns?

 For business to boom in towns and cities, there needs to be an abundance of infrastructure available for citizens to use so they can travel to and from businesses. When there is railway structure in place, or a sizable bus station for commuters to use, then there is a mental image in place for businesses to operate and open in towns that are in need of an economical boom. 

But there are many towns throughout the country that have not taken into account the vital use of capital allowances to not only improve the infrastructure of a town, but to lower the overall tax that can be felt on a commercial property that they own.

When cities throughout the country where becoming overpopulated, there was an intention to designate and build new towns in rural areas of the country where overpopulated cities could house individuals. For example, in 1961, the town of Skelmersdale for designated a new town to house a large portion of citizens from Liverpool, and 60 years later it has become an area of large business and commercial property to be situated. But there is one thing that has always been missing and has been constantly talked about for years; the lack of a commercial building for a railway station to be built. 

This alone has been a huge issue for the citizens of Skelmersdale, as the fact that there is a lack of train station hinders commuting and working for citizens of the town. But if Lancashire Council took into account the use of capital allowance for the commercial property of a train station, then a tax relief would be in place, lowering the overall cost of the commercial property, which in turn would attract even more business to the town and allow Lancashire Council to further enhance projects for the town.

In order to qualify for capital allowance however, a commercial building would need to understand what qualifying items of capital expenditure there are in place, in order for a valuable tax relief to become apparent. If Lancashire Council for example worked with Arenade, a company designed to help streamline the process of tax reliefs for businesses and commercial properties in towns and cities, they would be able to evaluate what could be claimed as a form of capital expenditure. 

A focus would be on trains at the station, ticket barriers, train time display boards, vending machines and waterproof areas available for seating for commuters to use whilst they wait for a train. All these would add up to an extraordinary capital allowance for Lancashire Council to claim under the commercial property of a railway station, thus creating the criteria for a form of capital expenditure to be in place.

There will always be a place for a commercial property to apply for capital allowance for their businesses if they meet the criteria of what can be used as a form of capital expenditure. When companies, businesses and local councils achieve a form of tax relief from a commercial property that they own, it will ultimately become fantastic for them to further enhance their business operations, allowing for more purchasing of capital expenditure to be present. This in turn could present more opportunities for capital allowance to be applied for by a commercial property, thus continuing the cycle for business to achieve a more profitable future for themselves.