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Capital Allowances Solutions
UK taxpayers including: Property Investors Owner occupiers Occupational tenants SOLUTIONS Pre-contract advice Due diligence Capital allowances claim preparation Inland Revenue and Valuation Office negotiations  SPECIFIC
SPECIALIST AREASPre-contract queries Contract clauses Elections Entitlement research Purchase price apportionment Development agreements CASE STUDY An offshore investor purchases a commercial office building constructed in the 1960s with tenants for £6million. The cashflow forecast shows that they are likely to have to pay a small amount of tax after loan interest which has been set against the rental income is taken into account. A survey of the building reveals there is a central heating system, lifts and electrical switchgear within the purchased property that belong to the purchaser. Tenants fittings are identified and disregarded. By virtue of the accepted apportionment formula between the land, building and plant and machinery these items generate a value of £450,000 as an apportionment of the purchase price. The vendor confirms they have never claimed allowances. This leads to a year one allowance of £112,500 which more eliminates any tax liability and thus removes the need to pay tax. Unclaimed allowances can be carried forward and claimed in future years. Remaining allowances can be claimed over future years. |
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