Buying & Selling Commercial Property and Claiming Capital Allowances

We recently completed a capital allowances claim for a client who was selling a large commercial property in the North East.

Although they had owned the property since 2006 they were totally unaware that they may have been able to claim capital allowances on their purchase price of c￡3.45m. This possibility only came to light when they were in the process of selling the property. Luckily we were able to assist them before the purchase was completed so our survey and report identified capital allowances of c￡915k. For a corporation tax payer this would represent a tax saving of c￡174k over time. In a way, this was a bitter sweet deal, because the seller was only able to go back two years to amend their tax returns so there ability to reclaim over paid tax was limited. However our reasonable fees were covered many times over by their tax rebate.

Therefore although the client wrote us one of the best testimonials we have ever received (which is published both on Google and on our website) it is still a pity they had not acted sooner after they had purchased the property. If they had they may have received the vast majority of the ￡174k tax saving by the time they came to sell.

The moral of the story is if you have incurred expenditure either buying, building or developing a commercial property or properties then contact us as soon as possible to receive a Free High Level Review of your potential for a capital allowances claim. If you don't you may find yourself passing on the majority of the benefit onto the buyer of the property.