Capital Allowances

In the case of a second hand property purchase, the construction cost information can be minimal or even non existent. In these circumstances an advisor who has both construction and tax knowledge is required to survey the property, then make assessments to provide the information required to make a capital allowances claim.

Positive Tax Solutions have created an alliance with Lovell Consulting in order to provide their clients with specialist capital allowances advice.

The professional team at Lovell Consulting work soley on capital allowance cases, they all are dual qualified in both quantity surveying and taxation. This combined expertise enables them to identify the more unusual types of qualifying expenditure, which is usually overlooked.

Lovell Consulting provide capital allowances advice to private clients, property investors and large multinationals across a wide range of industries. They can usually increase the value of capital allowances by between 20% and 30%. 

They have good relationships with HMRC and the Valuation Office, which often means faster and advantageous settlement of capital allowances claims. They boast that in thirteen years of operating they have never had a claim rejected.

Many clients wrongly assume that if capital allowances are not made in the year of expenditure the capital allowances are ‘lost’. However, Lovell Consulting point out, as long as the property is still owned by the client, a capital allowances claim can be made a number of years later, and the original tax return does not have to be reopened.

Obtaining capital allowances advice can be really useful at either at the initial stages of a building or renovation project, or prior to the purchase of a property.

With the increasing complexity of real estate transactions, consideration of capital allowances entitlement, and having a thorough due diligence framework are essential and can materially affect the yield profile and tax model of a deal.

For more information about this complex area contact us