Your Embedded Capital Allowance Tax Expert
The Capital Allowance Act of 2001 allows you to access tax relief on the purchase of assets that you are unable to post through the profit and loss account when producing your year end accounts.
This is most commonly on the purchase of commercial buildings and is commonly missed by Accountants.
You must be a UK taxpayer in order to make a Capital Allowance claim and this claim can be as much as 40% when purchasing a property that is either old, new or constructed by you. If the claim is on a renovation, extension or any other alteration’s this claim could potentially be even more than the 40%.
An Embedded Capital Allowance tax claim can only be made on a commercial property.
As long as the entity holding the commercial asset is paying tax in the UK you may qualify.
Properties held within a pension fund are not eligible for capital allowance tax relief. However, if you are seeking to purchase from a Pension Fund then contact us today.
Most property owners are unaware that UK tax laws allow them to claim Embedded Capital Allowances, missing out on significant savings.
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