Capital Allowances

Capital allowances are a form of tax relief which the Government allows individuals, partnerships and companies to claim against their trading profits.

EngineersThe intention of the capital allowances regime is to encourage investment and stimulate growth by giving tax relief for the reduction in value of qualifying assets that are purchased and owned for use in a business.

For most types of expenditure incurred by a business, the identification of assets qualifying for capital allowances and the application of the tax legislation relating to capital allowances is a relatively straightforward exercise for an accountant to undertake on behalf of a client.

However, when it comes to considering capital allowances available for expenditure incurred on a property, whether on a building for owner occupation or an investment property for letting, nothing could be further from the truth. The legislation is complex and has given rise to more case law than any other single area of taxation. It requires an understanding not only of tax but also a detailed knowledge of property, a combination of skills which most accountancy practices do not possess.

It is this specific area that Gateley Capitus specialise in. Using our in-house tax, property and accounting specialists, our approach and experience ensures that our clients obtain maximum benefit from all the tax relief they are entitled to when investing in real estate assets.

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