A tax allegiance of companies

Introduction

Our client approached us while their company planned to build a structure outside of its commercial premises, which would aim to protect the premises from floods and prevent damage. To do this, they should acquire land next to the building and incur demolition and construction costs.

The problem

The cost of this project was fairly meaningful, so it was important to the company that they understood What Reliefs Were Avaissable to them. They had read contradictory information on deductible costs of their commercial profits and wanted a professional opinion on what could be claimed. They Wanted to Ensure Any Releuent Claims COULD BE MADE ACCRATELY on the Company Tax Return.

It was concluded that in their Circumstances, They Could deduct the cost of the Land Itself only on a future Sale of That Land. However, all construction and demolition costs could be eligible for building structures and allowances (which provides an annual deduction of 3% over the lifespan of the new structure). This provided the client with certain for their reporting and the confidence that they had maximized their potential savings.

Following steps

If you want more information on the tax relief of companies or any support with your tax requests, please contact us.