The property agent is the first consultant to be contacted by a property investor in respect of their property transactions. You are therefore best placed to kick start the capital allowances due diligence and negotiation process now required for each transaction.
With the introduction of mandatory pooling, capital allowances must now be addressed before heads of terms are agreed. As solicitors and accountants are usually brought into the transaction process after this point, your early proactive involvement is essential.
Capital Allowances – The Benefits for Property Agents
Capital allowances, when addressed in detail, will help to move the deal forward and may increase the final value realised for the property.
- Capital allowances of as much as 45% of the purchase price may be available to the purchaser.
- Yields can be improved by up to 10% when factoring in the ca’s.
- Capital Allowances can be highlighted and factored into the investment appraisal or used as a negotiation tool, sometimes resulting in an increased purchase price.
- Capital allowances can no longer be ignored. Addressing Capital Allowances at an early stage will lead to a smoother running transaction and may result in higher tax savings for your client.
Whether acting for the purchaser or the vendor, HCCA can provide you with a full range of transactional advice to ensure that the capital allowance negotiations at transaction stage run smoothly and that your client optimises any tax saving available from capital allowances.
HCCA works in association with a number of professional service firms and is generally happy to form partnering arrangements where appropriate. We harmonise our roles and services with a view to providing a rounded property taxation service whilst maximising capital allowances opportunities and cash benefits for our respective clients. Whilst many of our current professionals see this service as a relationship enhancement with their clients, HCCA are happy to pay referral fees in respect of any introductions made that lead to valuation fees.
For any deals that you are instructed on at the moment or in the future, HCCA would welcome the opportunity to give free initial advice to make sure that your clients tax savings are protected and fully realised and that your deal does not get held up due to capital allowances issues.