What are Capital Allowances?
Capital allowances are a valuable form of tax relief. They are available to any entity incurring capital expenditure by buying, building or renovating commercial property. Capital allowances become available when a commercial property is acquired for use in the course of a trade, or in the course of a property investment business. You are also entitled to claim on new-builds, extensions and refurbishment works undertaken on a commercial property. Capital allowances have the effect of reducing the taxable profits attributable to the property. In many cases they can create a tax loss that can be relieved by the owning entity against other income.
Why do we need to consider this for clients?
In April 2014, changes were made to capital allowance rules. Whether you are acting for the seller or purchaser, you should raise the issue of CAs with your client as early as possible. Failing to do so could result in delays or financial loss to your client. If you are unsure about how to go about this, don’t worry, simply contact Pali and we’ll take care of everything for you. Commercial property lawyers could face future action for negligence if they fail to advise clients about impending tax relief changes.
To read the Law Society’s Practice Note on Capital Allowances please click here
Impress your clients and give your firm a competitive edge!
Pali have integrated with Catax Solutions, the leading Capital Allowances specialists, to enable you to order a no obligation, free capital allowances analysis via the Pali website in seconds. By following Pali’s Capital Allowances process, you will not only be fulfilling your due diligence obligation but it could result in your client claiming back valuable tax relief for any commercial entity; enabling you to offer a new service to clients.
By simply answering five basic questions regarding the commercial property, an assessment report will be returned to you in seconds confirming the likelihood of a being able to make a potential claim for tax relief. You can still submit the form, even if you are unable to answer all five questions and everything up to this stage is completely free of charge. Once the Capital Allowances Report is received, you can then decide if you or your client would like to take it any further.
Please contact us on 01925 227509 or email us at firstname.lastname@example.org if you would like any further information about Capital Allowances.