Capital allowances

With a cash benefit of up to 40% of total property expenditure, capital allowances offer a generous form of tax relief.

Capital allowances are a key tax planning consideration

Whether you acquire and manage commercial properties, develop new schemes or occupy and refurbish, capital allowances on a property purchase could yield a cash benefit of up to 20% of the total purchase price or a refurbishment return 40% of the total expenditure. Energy and water efficient technology can yield a 100% write-off in the year of expenditure or a 19% tax credit if the expenditure creates a loss.

Typical qualifying expenditure for capital allowances in the UK
Typical qualifying expenditure for capital allowances in the UK

How we help

For over 20 years we have provided robust and commercially astute advice as part of a comprehensive service to achieve optimum results on behalf of our clients. Our capital allowances service for all property investment includes:

  • Assessment of refurbishment and new construction projects to understand the availability of plant and machinery allowances and other tax reliefs
  • Pre-contract advice on purchases to ensure unclaimed allowances are identified and dealt with effectively
  • Historical reviews of property portfolios to capture latent capital allowances
  • Working with Gateley’s tax team to explore wider implications and opportunities arising from property investment
  • Providing advice to our clients and their advisors on the disposal of property to ensure future tax relief is not surrendered unnecessarily

With yields constantly changing and legislation restricting the use of historical losses and interest payments to mitigate tax, involving a specialist to maximise capital allowances arising from property investment can be a crucial part of improving cash flow for reinvestment.

Case study: Capital allowances price enhancement on hotel development

Gateley Capitus received instructions from a long-standing global investor client to prepare a capital allowances analysis on a development in Manchester. Part of a £90m regeneration scheme, the development included a hotel, restaurant and retail units.

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Speak to the team

We use a blend of property surveying skills and ability to interpret legal precedents, aligned to an understanding of accounting and tax, to accurately maximise relief.

Aubrey Calderwood

Director

Specialisms:

  • Technical application of fiscal incentives legislation for complex transactions and investment projects
  • Tax incentives for regeneration and sustainability developments
  • Major construction and development projects

+44 (0) 28 9026 9910

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Kevin Meyer

Director

Specialisms:

  • Multi-site owner and occupier portfolio analysis and statistical agreements
  • Sports stadium construction and redevelopment
  • International tax depreciation and cost segregation analysis

+44 (0) 121 212 7739

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Nick Small

Associate Director

Specialisms:

  • Institutional property investment funds
  • On and offshore property investment vehicles
  • Regeneration projects

+44 (0) 28 9026 9911

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Real Estate Advisory Services

Assembling the range of expertise you need for any new property investment or development project can be time-consuming and difficult to achieve. With our Real Estate Advisory Services, we can project manage this in-house.

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Wear and tear allowances

Wear and tear allowances (WTAs) are the most common form of capital allowances in the Republic of Ireland and are available where expenditure is incurred on plant and machinery within commercial and residential investment property.

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Tax depreciation services

For international investors acquiring property worldwide, our tax depreciation analysis and cost segregation service accelerates and maximises the tax relief available in each jurisdiction.

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Contact us

Whether it’s a current investment project or you would like to discuss a historical review of expenditure, we can help.

Contact us