Capital allowances advisors

Each year millions of pounds of tax allowances and reliefs go unclaimed.

Tax issues are often overlooked or considered at a late stage in property transactions, but when the full suite of options for tax allowances are used proactively they can secure significant savings from acquisitions, disposals, developments and brown field remediations.

For many tax is a consequence, rather than a strategy. Working alongside our clients to deeply understand their circumstances we leverage tax reliefs to positively shape property strategies; maximising your potential, opportunities and savings across property transactions and developments.

We understand that commercial business drivers will always dominate property development and investment, but if tax allowances and reliefs are used strategically they can significantly enhance returns. Our experience means that we know where to introduce and implement tax allowance strategies for maximum effect.

Contact us

Construction claim assessment

Capital Allowances is a technical and specialist activity that requires an optimal blend of knowledge, experience, and attitude.

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Our services are provided by senior advisers that have performed at the highest level across a variety of service platforms. Accounting, surveying and property consultancy experience blends together a considered and mature approach to claim solutions. We assume a thorough approach is required in all client requests but wherever possible we adopt simple, clear and disclosed services.

We believe capital allowances are an essential aspect in any project armoury and an invaluable value engineering tool. The inclusion of capital allowances estimates to project viability, feasibility, and financial modelling studies is paramount to enable our clients to fully consider project scope and returns. Maximising capital allowances then becomes an intrinsic project element, providing confidence to clients, and all stakeholders and interested parties.

Having a range of understanding through plant and machinery allowances, general plant, integral features, super deductions and first year allowances, structure and buildings allowances, contributions, grants, repairs, etc requires a holistic experienced approach to evaluate the best approach required.

Strategic acquisition advice

Our consultants have 20 plus years of advising on large and complex transactions through proactive planning and negotiation.

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Best practice and a high level of understanding underpin capital allowances transaction strategies, whether in selling or buying scenarios. Adopting a bespoke forward-thinking strategy establishes a competitive advantage over the opposing transacting parties, and in this respect capital allowances is no different to client investment and negotiation advice. A little proactive planning using foresight and judgement goes a long way to providing knowledgeable and maximised tax outcomes.

The building fixtures environment has evolved many times over the last 20-30 years, with finally, in the last 5 years at least, HMRC achieving a greater level of control and transparency. Significant opportunities remain however, for both sellers and buyers through an understanding of seller structure and positioning, protection and creative use of allowances both unidentified or identified, or knowing the right information required at the right time out with the standard CPSE enquiries. The key to success is in engaging the right expert early.

Sectorising allowances

All industry sectors are unique but require a tailored and transferable approach of core disciplines.

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Our cross trained senior surveying and tax experts have a unique set of skills which are required to assess, evaluate, review and document optimised capital allowances claims for our clients. We believe that core capabilities are essential to maximise savings in all industry sectors including offices, hotels and leisure, healthcare, manufacturing and so on. Whilst some industries require a more truly specialised approach such as the water industry or previously sports stadia and grounds (safety at work), we are also firm advocates of establishing expert knowledge in our client sectors.

Years of experience in listening to our clients business ideas and aspirations has taught us where best to place our focus in building strategies to increase allowances and savings. Existing building alterations may throw up a high degree of incidental assets, hotel projects will include a significant amount of embellishments and finishes, and healthcare builds will contain a high incidence of protective and clean assets. We listen, we learn, and we understand to how best develop our services to serve our individual clients.

Land remediation relief

An extremely rewarding tax relief that necessitates a highly specialised level of qualitative due diligence.

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Capital allowances advice requires a good degree of technical due diligence and entitlement considerations, and a high focus on analytical cost skills. However, the extremely valuable land remediation relief requires an opposing approach. To secure this relief It is fundamentally important to carry out a thorough understanding and review of all relevant client, transaction, property, environmental considerations, remediation strategy, and relevant costs to advise clients property. Failure to do so could be very costly.

A full review of this tax relief by HMRC several years back resulted in higher levels of legislative entitlement to focus the financial benefit where previously intended. Robust due diligence is key and must be enacted with the both the client’s and project consultant’s assistance to enable full disclosure of all relevant case facts. Our consultants are highly motivated to ensuring all client’s take advantage of this valuable project saving but with the correct, detailed approach.

Key capital allowances contacts

Peter O'Brien

    • Principal & Managing Director
    • Valuation Advisory Services
peter.o'[email protected]

News and updates

Big Box 24, Bridgwater

Big Box 24, Bridgwater 16 September 2021

352,303 sq ft distribution centre comes to market.

One of the largest standing distribution warehouses in the South West has been brought to market, with strategic real estate advisor Avison Young appointed to find a tenant or buyer.

Big Box 24, the 352,303 sq ft regional distribution centre owned by Sainsbury’s, is situated at Junction 24 of the M5, and is being marketed at a time of intense activity in the logistics market.

The fully fitted, modern cross-dock distribution centre is currently occupied by Argos and will be vacated from early / mid 2022 as part of the integration of the Sainsbury’s and Argos distribution networks.

“This asset will undoubtedly attract the attention of logistics and retail businesses who are responding to the demands of the last 18 months, and the continuing boom in home delivery requirements,” says Paul Hobbs, Director within the specialist national industrial team at Avison Young.

“We are now looking for a buyer or occupying tenant who can take advantage of this fully-fitted warehouse, strategically situated to service the South West, located in an area with a local, ready workforce and close to Europe’s largest construction site at Hinkley Point C.”

Paul Hobbs continues, “The last twelve months have seen challenges across all market sectors, but these changing conditions and a structural shift in how we are shopping have resulted in a continued demand for logistics and warehouse space across the UK. We are seeing record take-up this year within the sector with business confidence continuing to be robust.”

According to Avison Young’s Big Box Bulletin, UK take-up of large grade A warehouses (> 100,000 sq ft) amounted to 25.8 million sq ft during H1 2021, 73% up on the five-year, six-monthly average; with 46.1 million sq ft of take-up over the past 12 months. During this time, there have been 162 transactions.

Online retail sales continue at high levels and activity has been driven by e-commerce, whether from retailers directly or third-party logistics providers. The non-food retail sector accounted for 44% of H1 demand, with Amazon alone leasing 13 units totalling 5.4 million sq ft.

The exceptional demand has significantly reduced supply of big box units to 22 million sq ft (six months take-up at current rates). This compares to 25 million sq ft at the end of 2020 and 31 million sq ft at the end of 2019.

With a considerable amount of space under offer and there being no let-up in demand, supply levels are expected to fall further during the second half of the year.

“Big Box 24 is an excellent opportunity to engage in this active market,” concludes Paul Hobbs.

For further information visit: bigbox-24-bridgwater.co.uk

+44 (0)117 988 5220