Reducing Your Tax Liabilities

Kapital Property (Consulting) provides occupiers and investors with advice to enable them to achieve additional value from property interests by maximising available tax relief and benefits.

Most property investment expenditure attracts some form of tax relief. Those most commonly claimed include Plant and Machinery Allowances, Industrial Buildings Allowances, Revenue Deductions, Enhanced Capital Allowances and Land Remediation Relief (for Remediation of Contamination).

Budget 2009 Implications

There have been further changes this year to Capital Allowances and Land Remediation Relief legislation.

The reintroduction of a First Year Allowance (FYA) of 40% for the 12 months from 1 April 2009 (6 April 2009 for non-corporate) for general Plant & Machinery expenditure (not integral features) should be welcomed by property investors, though a property leasing business may be denied this enhancement.

Land Remediation Relief will also now be extended in certain instances to Japanese Knotweed treatment and to long term derelict land (defined as derelict on 1 April 1998 and continuously derelict since that date.)