James Telling, Head of Development and Acquisitions – 29th July 2021

Those who follow the commercial property sector intently would be well aware of the boom that the industrial asset class has see over the past 18 months.

Whilst long term commentators can attest to this trend over the past two decades, with the likes of Amazon, eBay and AliExpress requiring large warehouses and last-mile delivery facilities, the past 18 months have seen lockdowns become the new normal and have forced many businesses and consumers to provide and purchase goods and services online. This has raised e-commerce’s share of global retail trade from 14% in 2019 to 17% in 2020 and now 21% in 2021.

For the commercial property sector, this has meant that industrial and logistics asset classes have skyrocketed, with lets well above the estimated rental values and transactions occurring at record high prices and figures. It’s truly an incredible time to own industrial properties within the UK.

HMA Tax Director, Duncan Chittick provided his insight:

“Typical of any market, the supply and demand dynamics will continue to drive competition for the best assets, which in turn will generate strong investment volumes. It’s been clear when working with our longstanding clients at the point of transaction, that significant sums [of pounds] are flowing into the UK’s retail logistics sector, which hit a record high last year. This is down to investors seeking to ride a boom in ecommerce and shift cash from struggling office properties and shopping centres.”

Whether you own, are leasing out, or are looking to sell an industrial unit or an office complex, it is incredibly important to understand the impact embedded capital allowances can have on your tax bill.

For HMA Tax, rising rents have been allowing commercial property owners to reinvest into their properties, providing opportunity for significant embedded Capital Allowance claims, we are seeing droves of industrial land owners claiming significant tax relief and rebates on their investments.

Additionally, whilst transactions are occurring at record rates and soaring prices, it’s important for property owners, their accountants and their solicitors to understand how an embedded Capital Allowance claim can benefit your overall tax position. In the event of a property transaction there is a real risk that these incredible incentives can be lost, particularly if you’re not fully aware of your rights. At HMA Tax we work with hundreds of property owners, accountants and solicitors each year to assist in making a request for the transference of rights on Embedded Capital Allowances.

Are you buying a commercial property?

If you are a buyer and no previous claims have been made on the purchased commercial property, you could soon be entitled to thousands of pounds of tax relief, valued at up to 40% of your properties value.

HMA Tax can assist you in making a request for the transference of rights on Embedded Capital Allowances.

Once the rights have been transferred, we can also assist you in claiming thousands of pounds in tax relief.

Looking at selling a commercial property?

If you are planning on selling your commercial property and have previously claimed Embedded Capital Allowances, we can assist you in retaining the thousands of pounds in tax relief.

We ensure that you will continue to hold the rights to the tax relief, even after the point of sale.

Alternatively:

In the event you have claimed your allowances, but do not want to continue claiming the tax relief, we can transfer the ongoing value of your relief to the new property owner. By including any available tax relief within the sale of the property, we can dramatically improve the value of any commercial property for both parties.

If you or your team is interested in finding out more about Capital Allowance claims, estimate your claim below or get in touch with HMA Tax on 01384 904090.

If you own a commercial property and would like to find out more how your business could improve their tax situation, please call James Telling, Head of Development and Acquisitions on 01384 904090 or email james@hma.tax for more information.