Property capital allowances are the valuable form of tax relief available to anyone incurring capital expenditure buying or building a commercial property. As a business, you can claim tax allowance in the name of property capital allowance. This implies that you can deduct a proportion of these costs from your taxable profits and as a result reduce your tax bill.
There are some reasons that will promote the availability of the capital property allowance. The capital property is applicable when the commercial property is acquired for investment or occupation. Another reason that may promote the availability of the capital property allowance is when there is a commercial new build or extension that is being done on the commercial building. In most cases, you can not claim capital property allowance against the purchase price of land.
When it comes to the claims of capital property allowance, it is very difficult to claim capital allowance against the purchase of prices of land mainly because they value of the land increases with time. Capital allowance cannot be claimed on land because land is not a subject of depreciation. When it comes to the property allowance, the equipment in the commercial buildings are the ones that make the buildings to claimed the capital property allowance. When it comes to the claiming of the capital property allowance, the capital allowance can only be claimed once on the property. However when it comes to the matters of change of ownership of the property and there was already a capital claim on the property, there will be no other claim that will be claimed against the property. The claim of the capital allowance is calculated based on the price of the property at the purchase.
There are no limitations when it comes to the matters of dates and periods when you want to claim for capital allowance. When you want to claim a capital allowance, there is a process that should be followed. The services of an entity that is well informed on the matters to do with capital allowance are essentially when it comes to the claiming of a capital allowance. It is very good to make sure that the property that you intend to claim on the capital allowance has not been claimed on before.
It is also very essential to make sure that you carry out a detailed survey on the property. This will be very good since they will be able to know the value of the purchase of the property and the various Improvements that have been done on the property. The capital claim is made depending on the time and the period in which the property was bought. The decision of making the claim is arrived after making a survey and evaluation of the property.