Taxation Allowances
Taxation Allowances are inherent in most commercial property expenditure with the most valuable capital allowance available from such investments being 'Machinery and Plant'. Depending upon the property type, there can also be opportunities to claim for 'Industrial Building'.
The allowances are not necessarily limited to pure construction costs or direct services installations, but can include structural and/or passive elements of a building as well as proportions of associated professional fees. Tax efficiency can also be built into design considerations at an early stage.
Claims for developments can provide substantial tax savings to property investors, developer investors, developers, and other non- claimants.
Our specialist department have dealt with over £10 bn of property expenditure claiming allowances of around £3 bn for all types of commercial clients investing in office, retail, hotel, leisure and industrial properties.
In order to benefit from tax allowances there needs to be a taxation liability that can shelter the relief, either initially or in the medium term
In some circumstances clients may not be in a financial position to make direct use of the tax relief and at the same time could well make use of low cost finance - be it as part of a capital contribution or maybe for an endowment fund for operating the facility well after physical completion.
This can create an opportunity for a financial structure whereby a corporate lessor will effectively acquire the tax shelter for either a sinking fund consideration or discounted rental stream. The subject is complex but nevertheless meaningful particularly when introduced to major construction expenditure.
Gleeds Capital within Gleeds Financial Services has exceptional experience in this field acting upon a series of key projects and clients throughout the UK. Our aim is to minimise the net finance costs and maximise benefits in order to achieve a significant saving on funding costs.
