What are Capital Allowances?
Capital Allowances are a form of tax relief relevant to virtually every business and property investor that has incurred expenditure on commercial property and who hold property as a fixed asset. Capital Allowances are generated from expenditure on fixtures, for example, heating systems or sanitary appliances and are common to most types of property from the following scenarios:
- Purchase of an existing or newly built property
- Construction of a new property
- Building alterations, extensions and refurbishments to a property
- The expenditure incurred to fit-out a let property by the landlord and / or tenant.
Capital Allowances are available for all businesses and individuals who are liable for tax, from private individuals and sole traders to large nationwide organisations.
Many property owners are surprised by the wide range of assets and expenditure that qualify for Capital Allowances and this is why the expertise of a Capital Allowance Consultant can prove advantageous, ensuring that clients do not miss out on valuable tax relief.