We have found GP and dentist surgeries to both have a high instance of property ownership and investment in fitting out to be fit for purpose. Both areas throw up a plethora of opportunities to access substantial Capital Allowances value.
Capital Allowances claims encompass many specialist systems such as patient displays and supporting utility infrastructure to medical equipment. Capital Allowances are also on the more generic systems that under pin the operation of the property e.g. heating, sanitaryware etc.
Capital allowances claims on doctors’ surgeries range greatly between 20% to 30% depending on the age of the construction and location. Fitout expenditure can regularly contain 50%+ capital allowances eligibility resulting in a substantial cash saving.
Over the years we have worked on a wide range of care and nursing homes. Properties have ranged from specialised smaller homes for those with a particular need to large more standard homes for the elderly.
A large part of the capital allowances available will come from the systems like electrical distribution, water and space heating, sanitary ware, internal communications, fire alarms and suppression systems to name just a few fixtures. They will also often extend to cover more specialist medical installations and the supporting utility infrastructure. These areas combine to make claim Capital Allowances on care homes a very attractive proposition.
Capital allowances claims on care homes range between 25% to 30% with renovation and construction projects coming in even higher.
We have worked on a significant number of industrial units over the years. These have come in all shapes and size from every combination attached/integrated office space imaginable to being purely for the refrigeration and storage of more potatoes than most people will ever see in one place.
A large part of the Capital Allowances available will come from the systems like electrical distribution, water and space heating, AC and ventilation systems, security and fire alarms and a plethora of other fixtures.
Claims can vary greatly from lows of 10% up to 30%. This depends on the format of the property in question. For example, a warehouse is likely to have a much lower density of Capital Allowance eligible fixtures due to the large amount of empty space for storage of goods. Whereas a meat process plant will be loaded with refrigeration and processing equipment with the utility infrastructure to match.
Bar & Restaurant
Our work in this sector has been broadly split 50:50 between the acquisition of freehold/long lease hold interests and development / fit out projects. Both are particular exciting in this sector.
In the leisure industry the appearance of the customer facing floor space is crucial to the success of the business. Because of this a wider number of items that create that mission critical ambiance are eligible for capital allowances than in most other industries.
Examples of Capital Allowances eligible fixtures include decorative assets, commercial kitchen equipment, utility infrastructure, signage, extraction systems and many more.
Unrestricted acquisition claims regularly exceed 35% of the purchase consideration with fits normally far exceeding 50% of the spend in terms of available capital allowances.
Furnished Holiday Lets
Most residential units are excluded from claiming Capital Allowances, however, if your property meets the furnished holiday let criteria, it becomes taxed more akin to a commercial property. The chief benefit of this change is the ability to claim Capital Allowances on both loose items of plant and the fixtures.
We have worked extensively in sector from bulk investors buying large inner-city blocks, developers building holiday parks for fractional sale to individual investors looking to realign their buy to lets.
The name Furnished holiday lets is often miss leading as most are not let to holiday makers instead put to key workers and those travelling for business.
The average freehold claim is 25% of the purchase consideration with leasehold units pushing up to 30% due to the shared structural costs. This can mean the profits from a furnished holiday let being tax free for many years.
Hotels can contain a startling high density of plant and machinery fixtures. We have worked on a wide variety of projects from the purchase of guest houses to the fitting out of entire holiday complexes.
In the leisure industry the appearance of the customer facing floor space is crucial to the success of the business. Because of this, a wider number of items that create that mission critical ambiance are eligible for Capital Allowances than in most other industries. This can make hotels the Rolls Royce of properties for Capital Allowances claims!
Capital Allowances can be available on sanitaryware, hot and cold water, building management systems, bar and restaurant fittings, heating, air handling and even chandeliers to name a few fixtures.
Acquisition claims on hotel can range between 30% to 50% of the purchase consideration with renovation projects coming in even higher.
The backbone of our work is on office space of one form or another. From 1,000 square foot above a retail unit to 30 storey skyscrapers, STax have delivered substantial Capital Allowance value to both trades and investors like.
Where the majority of our work in this area is for the owners of freeholders and head lease interests we have undertaken a significant number of review on fitout and redevelopment expenditure and to date have never failed to deliver a material amount of additional (above that identified by their general advisors) relief to our clients.
Capital Allowances can be available on the hot and cold-water systems, sanitaryware, lifts, fixed furniture, fire alarms and suppression systems, air handling and conditioning to name just a very small number of the qualifying systems found in most offices.
The average unrestricted acquisition claim on an airconditioned office with lift, is 25% of the purchase consideration. For an additional rate income taxpayer that’s over 11% of purchase price back in saved tax!
Whilst not the bulk of our work, owners and operators of zoos can benefit greatly from claiming their full entitlement to Capital Allowances.
Claims can cover items like the underlying utility infrastructure, security systems and even the zoo cages themselves. A large proportion of the capital allowance value will flow from the installations in the visitor areas like the restaurants, play areas and shops to name a few. This effectively makes a zoo a collection of a number of different building types combined, with obviously a few animals present too.
Claims on zoos can sometimes be as high as 40% to 50% of the qualifying expenditure!
Here is a list of all popular building types that can claim Capital Allowances.
o Nursing / Care home
o Petrol Station
o Private Harbour
o Private Hospital
o Private School / Nursery
o Railway Station
o Resturant Only
o Retail Store
o Retail Warehouse
o Shopping Centre
o Swimming Pool
o Veterinary Surgery
o Adventure Park
o Multi unit residential
o Bar / Resturant
o Bar Only
o Bowling Complex
o Car Show Room
o Collage / University Campus
o Dental Surgery
o Doctor Surgery
o Energy Plant
o Furnished Holiday Let
o Funeral Service
o Multi-Storey Car Park