Investing in commercial property? A significant proportion of your spend may qualify for tax relief
Investing in capital assets such as commercial property and equipment offers invaluable tax incentives. At YesTax we are able to compliment the work of your accountant and undertake a full survey and valuation exercise, typically, where expenditure is incurred on building projects to either extend, fit-out or renovate your commercial property space. A specialist exercise ensures you secure the full value of your capital investments in support of future growth.
Recently YesTax assisted a dental practice who had spent £260,000 on the fit-out of their surgery with what was an existing office building in Sheffield. Perhaps a slightly unusual case, but £240,000 of the total expenditure spent on the project was qualifying for first year allowances.
As a result of the detailed site survey undertaken by YesTax, the spend that appeared as structural in the basic cost information (and therefore not qualifying for first year allowances) was instead identified to directly relate to the installation of specialist equipment, and therefore qualifying for the best reliefs. For example the dental chair and associated systems required extensive modifications to the structure and drainage of the building. In this example, more than 90% of the spend qualified for tax relief. An unmissable opportunity which can play a vital role in the cash flow of a business.
Following the site survey, YesTax prepared a comprehensive capital allowances report, suitable for submission to HMRC, setting out the plant & machinery allowances. The allowances identified resulted in £56,000 of tax savings, arising immediately, through the use of Full Expensing & Annual Investment Allowances.
For investments of this nature, referring the work to a specialist can add significant value, not only in optimising the claim potential, but also in providing the level of justification and disclosure required to support a claim.
For all claim assistance or capital allowances related queries, please contact YesTax on 0114 5537850
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