Wear and tear allowances

Wear and tear allowances are available where expenditure is incurred on plant and machinery within commercial and residential investment property.

Wear and tear allowances on property purchases and capital projects

Wear and tear allowances are available where expenditure is incurred on plant and machinery within commercial and residential investment property.

Relevant expenditure includes property purchases and expenditure on capital projects such as developments, refurbishments and fit-outs.

Property purchases

For property purchases, it is possible to aportion the total value of plant and machinery to the purchase price paid, subject to satisfying the relevant entitlement criteria.

Our approach involves undertaking a detailed analysis of the legal documentation, establishing a reasonable basis for entitlement and identifying the qualifying elements of the property purchase and preparing a maximised valuation. Our fully disclosed and transparent valuation reports are in line with Revenue guidelines and fulfil self-assessment requirements for tax returns.

Capital projects

For capital projects, getting us involved at design stage ensures that wear and tear allowances and in particular accelerated capital allowances are maximised. We can also act retrospectively and in many cases, considerable tax relief can be achieved through the analysis of historical expenditure.

Our approach involves collating and analysing relevant construction and accounting information and by undertaking an in-depth analysis, we identify and maximise expenditure qualifying for tax relief. Where construction information is not readily available, we can supplement this with our own construction measurement and pricing data using our property surveying expertise.

To ensure an audit trail, our final claim document is reconciled to our client’s accounts and we employ a methodology which is fully in line with The Office of the Revenue Commissioners guidance.

Typical qualifying expenditure for wear and tear allowances in Ireland
Typical qualifying expenditure for wear and tear allowances in Ireland

 

How we can help

We advise on the following:

  • Purchase and sales
  • Construction and refurbishment
  • Hotels and industrial buildings
  • Repair expenditure claims
  • Tax efficient design
  • Historic expenditure reviews
  • Review of in-house claims

To get the best result we offer a range of specialist skills and experience, with many of our expert professionals possessing dual tax and surveying qualifications. Our clients appreciate our robust, low-risk approach that maximises capital allowances with a cash-generative service.

Case study – Wear and tear allowances on an office purchase

The project comprised the valuation of wear and tear allowances on the purchase of a €10.2m six-storey modern office property in Dublin 2 by a property investment company. Almost €2,700,000 or 26% of the purchase price qualified.

Read more

Tax incentives in the Republic of Ireland

We have the largest and most experienced team of capital allowances specialists in Ireland, providing expert advice on a range of property-related tax incentives.

Read more

Speak to the team

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

Phil O’Connor

Senior Consultant

Specialisms:

+353 (0) 1 428 3533
+353 (0) 87 779 7639

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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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Stacey Ferguson

Senior Consultant

Specialisms:

+44 (0) 28 9026 9913

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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