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

Avison Young advises Suffolk County Council on new property development alliance

Avison Young advises Suffolk County Council on new property development alliance 18 January 2022

A new joint venture between Suffolk County Council and Lovell Partnerships will help deliver nearly 3,000 much-needed homes on council land.

A new joint venture between Suffolk County Council and Lovell Partnerships will help deliver nearly 3,000 much-needed homes on council land.

Lovell Partnerships was identified as the preferred bidder following a nine-month procurement process. Suffolk County Council was advised throughout the procurement process by Avison Young, Concertus Design and Property Consultants, and legal advisors Pinsent Masons.

Contracts are expected to be concluded in spring 2022, with the joint venture established in the summer.

Five initial locations have already been identified in Lowestoft, Mildenhall, Bramford, West Row and Newmarket, with capacity for a total of around 2,800 low carbon homes plus new schools, employment land and open spaces. The proposals include an option for further sites to be delivered by the joint venture in future should additional suitable council-owned land become surplus to requirements.

The 50:50 partnership is intended to deliver around £700m of gross development value over the course of the proposed 15-year agreement, with the option to extend to a further five.

Ishdeep Bawa, Director, Public Sector Financial Advisory at Avison Young, said: “This JV will enable the Council to accelerate and support high-quality residential developments, providing the type of homes Suffolk needs, maximise social value and delivering inclusive growth, whilst taking a lead on sustainability commitments.

Lovell has demonstrated an alignment to the Council’s objectives, and I have no doubt that this partnership will flourish in creating new thriving communities in Suffolk. It has been a pleasure supporting the Council in reaching this crucial milestone and we look forward to working with both parties over the next couple of months to drive forward delivery.”

Councillor Richard Smith, Suffolk County Council Cabinet Member for Economic Development, said: “The council is very pleased to be working in partnership with Lovell to deliver high quality and sustainable homes.

“This will help meet the needs of the people of Suffolk, provide much needed social housing and new community facilities and provide value for tax-payers.

“The partnership will also generate significant funds for the council over the long-term for strategic expenditure and investment.”

Steve Coleby, Lovell managing director, said, “We are absolutely delighted to have been chosen by Suffolk County Council to be its joint venture partner.

“Partnership working is at the heart of what we do and we share our partner’s ambitions for high quality new homes, climate resilience and maximising opportunities for local communities in the places we will be creating together.”

+44 (0)20 7911 2657