Tax depreciation analysis

We have carried out cost segregation and tax depreciation analysis for international property investors in countries across Europe, Africa, Asia, Australia and the Americas.

Tax depreciation analysis for international property investment

For investors acquiring properties overseas, our tax depreciation analysis and cost segregation services maximise the tax relief available in each jurisdiction. This can be achieved by accelerating the depreciation of a property at rates that reflect the economic life of each component element.

By preparing a tax depreciation and cost segregation analysis on the expenditure incurred on a purchase, refurbishment or new development, investors can:

  • Reduce current and future tax liabilities
  • Improve cash flow
  • Free up capital for further investment

How we can help

We provide straightforward, pragmatic and timely advice, in areas such as:

  • Assessing and providing a cash flow forecast of the potential savings available on acquisitions and construction projects
  • Advising on the local legislation and the ability to work with advisors to identify risk factors and opportunities
  • Preparing a detailed cost segregation analysis and applying specific depreciation rates to ensure tax relief is both maximised and accelerated
  • Preparing capital allowances claims on properties held by UK companies receiving rental income from properties owned overseas

We can liaise and work with local advisors and provide a specialist service, making us a valuable partner when investing in commercial property worldwide.

What you need to know

The depreciation policy for property in many jurisdictions worldwide is usually based on a composite rate of 2% or 4% per annum. This does not account for plant and machinery, such as lighting, air conditioning, and hot and cold water systems, which have a much shorter ‘useful economic life’ than the fabric of the building.

Most tax jurisdictions will allow the taxpayer to accelerate the rate of depreciation for each element of a building at a rate consistent with its “useful economic life”.  This requires a specialist skillset to value each element of a building and correctly apply the relevant depreciation rates.

Case study – Tax depreciation analysis of a data centre in France

A multinational data centre client engaged Gateley Capitus to prepare a tax depreciation analysis on the purchase of a former factory building in Paris and the subsequent construction of a new data centre. The total expenditure equated to approximately €90m.

View case study

Tax incentives on property investment

Investors are continuously identifying opportunities to improve margins and enhance returns. Capital allowances can play a significant role in this value engineering.

Find out more

Speak to the team

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

View profile

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

View profile

Chris Bird

Business Development Manager

Specialisms:

  • Enquiry management
  • Relationship management
  • New client development

+44 (0) 121 234 0271

View profile

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.

Find out more

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.

Find out more

Real estate advisory services

Assembling the correct advisory team for any new property investment or development project can be time-consuming and difficult to achieve. Our real estate advisory services provide an integrated solution.

Find out more

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