The actual value of Property Capital Allowances is calculated against the purchase price plus all acquisition costs – Legal Fees, Stamp Duty, Surveys etc. plus allowable and unclaimed development costs.
Therefore, a £1,000,000 hotel could have £400,000 of Property Capital Allowances to claim giving £80,000 of Corporation tax saving or up to £180,000 saving for a higher rate tax payer.
These tax savings can be considerable and both parties could lose them forever if CPSE.1 section 32 isn’t filled in correctly at the point of completion of the Sales Contract.
SKS Bailey Group registered within UK with Company registration number 12748942. Registered office: C/O 30 Yoden Way, Peterlee, County Durham SR8 1AL