In commercial property, understanding the intricacies of tax relief, particularly those surrounding plant and machinery, is imperative. You can optimise your financial strategy by familiarising yourself with allowable items. 

Below, we shed light on the most common allowable items, enhancing your commercial property knowledge and helping you make potentially significant savings. 

What Do We Mean By An Allowable Item? 

This means qualifying expenditure within your property that you can write off against your taxable income. This isn’t ordinarily covered by your accountant;  it requires a qualified surveyor to undertake a survey of the building. An allowable item ultimately reduces your tax bill. 

What Constitutes ‘Plant and Machinery’ in Commercial Property?

At first glance, the terms ‘plant’ and ‘machinery’ might evoke images of heavy machinery and factory floors. However, in the context of commercial property tax relief, it spans a broad spectrum, encapsulating various assets integral to a property’s functionality and value.

The Most Common Allowable Items

Integrated Systems: Think centralised heating, air conditioning, and water systems. These are fundamental to most commercial spaces and are primary candidates for allowances.

Security Installations: From advanced security systems, CCTV setups to fire alarms, safety is paramount, and the investments you make here can often be offset.

Lifts and Escalators: Essential for multi-storey structures, these mobility solutions are standard allowable items.

Sanitary Fixtures: Bathrooms, sinks, and related fixtures fall squarely into the plant and machinery category in commercial settings.

Electrical Systems: Wiring, lighting systems, and backup generators form the backbone of modern commercial properties, ensuring they operate seamlessly.

Beyond the Obvious: Lesser-Known Allowable Assets

It is little known by accountants who you may usually trust to handle your tax affairs, but within commercial property tax relief, there are lots of lesser-known assets that can be claimed. This includes, decorative assets enhancing a property’s aesthetics to waste disposal systems. The depth and breadth of allowable items is vast, ensuring businesses can maximise their relief. That’s why we undertake full due diligence to maximise your savings. 

Expert Advice Will Save You Money

While knowledge is power, expertise is invaluable. Engaging with property tax professionals familiar with the nuances of plant and machinery can be the difference between an average return on investment and an outstanding one.

This is what we specialise in, and we have a 100% success rate in making savings for our clients. See our case studies and testimonials to see how we have helped other commercial property owners. 

Conclusion

Unravelling the world of plant and machinery allowances in commercial property might seem daunting initially. But with the right knowledge and expert insights, it becomes a strategic tool, enabling you to optimise your financial positioning.

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