Enhanced capital allowances

Attracting a 100% first-year allowance, enhanced capital allowances have become an important consideration at design stage planning for asset management, new build construction projects and purchases.

Enhanced capital allowances – tax incentives for energy and water-saving technologies

The Government’s enhanced capital allowances (ECAs) scheme is designed to incentivise investment in energy and water saving plant and machinery.

Furthermore, with the introduction of minimum energy efficiency standards (“MEES”) in 2018, landlords with EPC sub standard properties will be prohibited from agreeing to a new lease without first bringing the property up to the minimum standard. Although mandatory, minimum energy efficiency standards also provide an opportunity to improve the desirability and therefore the rental and disposal value of your assets.

How we can help

Our enhanced capital allowances service is cash-generative and with a focus on maximising qualifying expenditure can have a significant impact on your cash flow.  Whilst not the primary basis for construction design, our involvement at design stage brings an awareness of the opportunity to improve the tax efficiency of the construction project.

Since they present a very generous incentive, HMRC is discerning when they receive valuations. They are much more likely to challenge a tax return that does not include comprehensive support documentation. We ensure submissions for capital allowances are transparent and include fully supporting documentation. We manage the entire submission process from initial design stage through to completion, bringing all the relevant expertise, experience and a proactive skill set.

Case study – Historical review of data centre’s enhanced capital allowances

We were invited by a major data centre operator to review £27m of historical expenditure to validate whether the enhanced capital allowances entitlement had been maximised. Our review found qualifying expenditure was undervalued and we were able to improve the total value by a factor of 10.

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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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Chris Bird

Business Development Manager

Specialisms:

  • Enquiry management
  • Relationship management
  • New client development

+44 (0) 121 234 0271

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Tax incentives on property development

Developers who take advantage of the full array of capital allowances often see a marked improvement in cash flow, which in turn improves margins and mitigates risk.

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Land Remediation Relief

Land Remediation Relief attracts 150% tax relief and can be claimed by both developers and investors, regardless of whether the development is held as a fixed asset or as trading stock.

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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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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