Capital allowances
Capital allowances are available to investors of commercial property who are treat the expenditure as a fixed asset. This can be available on purchases, refurbishments and construction of commercial property. The plant and machinery included in the acquisition or development, can be claimed upon to reduce your tax liability. Typically, on a purchase of an industrial property 15% to 25% of the cost can qualify for capital allowances.
If the incoming purchaser is to treat the property as a fixed asset, then they could claim capital allowances on the acquisition. The allowances would be used to mitigate their tax liability or increase any losses. This opportunity can be used to entice potential purchasers and possibly add value due to the tax savings available.
Land remediation relief
If the properties are owned by a company and contamination remedial works have to be undertaken, this can be claimed under land remediation relief. This tax relief is available to investors and developers and is given at up to 150% of qualifying expenditure or if loss making, you can surrender the qualifying relief for a tax credit of 24% of the qualifying expenditure.
The contamination works can include:
Asbestos removal
Capping layers
Removal of hydrocarbons
Containment or removal of Japanese knotweed, radon and arsenic.
Reference
innovation 4 business
Important note
The comments in this tax note are non-exhaustive and do not constitute advice. Please obtain your own tax advice if you are unsure of anything