Is your Company missing out on Valuable Tax allowances?
If you own a commercial property, you may be entitled to claim embedded Capital Allowances, which will reduce your tax liabilities.
Embedded Capital Allowances relate to items of Plant and Machinery which are hidden in the overall fabric of a building. These qualifying elements are typically categorised as heating, electrical, security, fire/smoke alarm, lift installations,emergency lighting, sanitary ware, etc.
Capital Allowances often remain unclaimed because of a lack of appropriate documentation necessary to support a claim. Identification and quantification of these allowances is a specialist task which would be outside the scope of work included in the preparation of routine tax returns.
The amounts involved can often be substantial and can lead to both reductions in future tax liabilities and refunds of tax already paid.
For example: A commercial office building developed for €1,000,000.00 couldtypically have up to 35% / €350,000.00 of embedded plant and machinery, whichwould equate to a tax saving of -
- €43,750.00 for a limited company (paying CT at 12.5%).
- €131,250.00 for a limited company leasing the property (CT at 12.5% + 25% surcharge)
- €175,000.00 for an individual (paying income tax at 50%).
Action Required
If you have
- Purchased / developed commercial property OR
- Carried out extensions/alterations/ refurbishment of commercial property.
It is probable that you have unclaimed embedded capital allowances.
Why Action is Required
- It is critical that this assessment is carried out before their opportunity to claim is lost.
- Even if you don’t have a current tax liability, once secured, these allowance scan be held and utilized in the future.
- They are of significant value and can be sold on with the building.
- Secured Capital Allowances may entitle you to an immediate tax rebate from the Revenue.
Please contact our office as soon as possible to discuss whether a claim would be appropriate for your premises. If necessary, we will organise a review of your premises by our specialist capital allowances surveyor, free of charge, who will assess the eligibility and approximate value of a successful claim.
Tax Rebate / Future Tax Panning OpportunitiesEven if you do not have a current tax liability there may be opportunities to reclaim tax paid in earlier years. Also once the allowances are claimed and agreed they are available to be utilised in future years.
If you are considering the sale of commercial premises, establishing a future stream of tax allowances available to a purchaser can enhance the value of the building.Similarly, if you are considering the purchase of a commercial premise, or have recently done so, a claim for embedded capital allowances can reduce the overall cost to you.
If you wish to discuss any of the above,
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