GLASGOW: It will come as no surprise to many commercial property owners that Scotland is shaping up to be one of the major players in the UK’s post pandemic recovery.

Whilst across the UK, commercial property investment offers average annual yields of 10.7%, In the last week, Scotland has been identified by Savills as offering the highest commercial property yields at a whopping 20.4%. This is followed by the South West at 13.7% and Yorkshire and the Humber at 12.9%. Quite the differential.

With such high yields in Scotland, it’s no wonder private equity and overseas investors have been the dominant buyers into the Scottish market, despite the restrictions that the pandemic has generated.

The total investment into the Scottish commercial property sector has reached over £770 million during the first half of 2021, reflecting a 62% increase on this figure recorded at the same time last year.

Andy Milnes, Senior Claims Specialist explains:

“This past year, the growth we have seen in Scotland has been hugely encouraging and demonstrates how the pent-up demand of the pandemic is starting to generate activity in this market. Speaking with our Scottish partners it’s clear these figures are boosting confidence in major city centres such as Glasgow and Edinburgh”

Scotland remains a region of great strategic importance to HMA Tax and our team are thrilled to continue providing expert advisory and embedded capital allowance services to commercial property owners during this exciting period of growth.

Whilst HMA Tax has been working with clients across Scotland since our inception, our team opened our first Glasgow Office on June 1st this year, coinciding directly with Scotland’s impressive year-on-year growth in commercial property investment.

Duncan Chittick, Director recently commented on the key drivers for Scotland’s commercial property growth, as well as the value of embedded capital allowances that property owners are likely missing out on:

“In Scotland, and across the UK, we have noticed a near insatiable appetite for the industrial and logistics asset class due to the hands off, buy-to-let and approach to investing. However, we are still seeing commercial property owners that have failed to account for their embedded Capital Allowances.

With the levels of commercial property investment that we are seeing in Scotland, and the renewed interest in the region by private equity and offshore investors, now more than ever commercial property owners are likely missing out on hundreds of thousands of pounds of tax relief that would drastically improve their overall cash position.”

Whilst transactions are occurring at record rates and at soaring prices, it’s important for property owners, their accountants and their solicitors to understand how an embedded Capital Allowance claim can benefit their 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.