Providing specialist advice on commercial property tax, we ensure our clients optimise all tax savings opportunities through capital allowances, R&D reliefs, land remediation relief and more
Capital allowances relief can provide significant tax savings for capital expenditure incurred on the acquisition, construction, fit-out, refurbishment or extension of your commercial property.
Our tax depreciation team is well placed to help you maximise the tax relief available through their in-depth knowledge of construction methods, tax law and accounting.
We can advise you throughout the whole process of disposing and/ or acquiring commercial property and will liaise with your legal team from the onset to ensure that any unclaimed allowances are not lost and the best outcome is achieved.
In addition, we carry out history reviews of your property portfolio, identifying any unclaimed inherent tax relief and providing pre-contract advice on construction, refurbishment and fit-out projects to optimise the tax reliefs available.
Land Remediation Relief
Land remediation relief (“LRR”) is a generous tax incentive that can provide a corporate tax deduction of 150%, or tax credit of 19% for companies who are loss making, for expenditure incurred on the containment or removal of contaminants such as asbestos, radon, and Japanese knotweed.
With the cost of site remediation often being a commercial driver in whether a brownfield site development can go ahead the consideration of this under utilised relief can be the difference between a site being commercially viable or not.
Our team can advise at the early stage of the process, carrying out pre-contract due diligence to ensure that any remediation or containment work will qualify for the relief.
We then carry out an analysis of the proposed remediation works to ascertain the likely benefit to assist with your financial modelling and cash flow projections for the project. Where the project is viable we shall produce a detailed report, outlining qualification, the methodology adopted and qualifying spend.
R&D and Other Reliefs
As well as capital allowances and land remediation relief, our team can advise on the VAT implications when considering the funding and ownership structures for commercial property development.
Research & Development Relief (“R&D”)
R&D reliefs support companies that work on innovative projects in science and technology and can be claimed by a range of companies that seek to research or develop an advance in their field, whether the project is successful or not.
You may be able to claim Corporation Tax relief if your project meets our definition of R&D.
Types of R&D Relief
There are different types of R&D relief, depending on the size of your company and if the project has been subcontracted to you or not.
Small & medium sized enterprises (“SME”) relief
SME relief can provide a deduction of an extra 130% of your qualifying costs from your yearly profit, as well as the normal 100% deduction, giving a total deduction of 230%. Or where loss making can provide a tax credit equivalent of 14.5% of the surrenderable loss.
Research and development expenditure credit (“RDEC”)
- RDEC is available for large companies and also SMEs and large companies that have been subcontracted to do R&D work by a large company.
- The RDEC tax credit provides a tax credit of:
- 11% for qualifying expenditure up to 31 Dec 2017.
- 12% for qualifying expenditure incurred between 1st Jan 2018 – 31 Mar 2020.
- 13% for qualifying expenditure incurred from 1 Apr 2020.