A little about Afilia
Afilia Capital Allowances is a well-established consultancy, founded by David Rees BSc FRICS, and advising on tax reliefs on commercial property - with a reputation going back to Crosher & James in the 1990's and Davis Langdon post-2000. Each of our team has over twenty years experience in Capital Allowances.
We offer a broad spectrum of knowledge across the sectors of the economy from hotels to headquarter offices, and car dealerships to care homes. Over many years we have been key advisers in primary care - working on over 100 surgery development and improvement projects.
Whether your role in commercial property is investor, owner, occupier, or adviser - then optimal returns are essential. Capital Allowances offer significant bottom-line savings, particularly for refurbishment and upgrade programmes.
Our role is to assist you in ensuring tax relief is part of your property agenda. With the experience of over £500m in claims for allowances we have the expertise to help you maintain a tax-friendly approach.
Pre-planning the available reliefs can improve deliverability, enable a better specification on the same budget, and help achieve sustainability targets.
News - Freedom of Information request for GPs and tax reliefs
Further to our 2020 article on the new NHS policy to restrict doctors from claiming available tax reliefs on their contributions to grant-aided premises improvement schemes, we recently made an FOI request to the NHS. This change was introduced with no consultation or formal announcement and so we sought clarification. The response lacked clarity and was unyielding. Please contact us if you have been affected.
Tempus Fugit - Time flies with the temporary tax reliefs
Expiring in March 2023 means there is limited available time to take advantage of the Super Deduction and the 50% First Year Allowance for Special Rate Pool plant & machinery. Construction materials and manpower shortages and a slow planning system do not help. Property professionals will need to ensure that their clients; owners, investors, and occupiers of commercial buildings, are aware of the need for early decisions. A more detailed example of an office refurbishment is available here.
Landlords to benefit from Super Deduction
In an amendment to the Budget announcement, the government has reversed its position and made the new temporary tax reliefs available to landlords - providing a 50% First Year Allowance on the Special Rate Pool and the 130% Super Deduction on Main Pool items.
The new Super Deduction temporary tax relief
The Budget brought with it an unexpected announcement of new temporary tax reliefs available from 1st April 2021 until 31st March 2023. A new 50% First Year Allowance can be applied to claims on Integral Features. For General or Main Pool items a new "Super Deduction" will uplift the base claim value by 130%. Read more here.
£1m Annual Investment Allowance extended to March 31st 2023
The Treasury has announced an extension of the AIA £1m rate which was due to end on 31st December 2020 and then to revert to its pre-2018 level of £200,000. This is a welcome announcement and it is puzzling that the Treasury have delayed on this until the last minute. There is no doubt that an AIA of £1m makes a significant difference to initial project appraisals - typically representing a bottom-line first year cost-saving of anything between 5% and 15% of construction budget. For a more detailed review click here.
NHS changes the rules for GPs claiming tax reliefs on surgery improvements
The NHS Estates and Technology Transformation Fund provides grants to assist GPs with the cost of premises improvements. A new change to the rules now requires GPs to not make any claims for tax reliefs on their contribution to the project cost. Click here to read more.
Business premises - beyond the pandemic
Much is being talked about in the context of increased home-working by employees and the need for smaller office footprints and more hot-desking. Nevertheless in many instances there may be a need for considerable adaptation to existing premises to accommodate new more socially-distanced working practices. Utilising tax relief at the planning stage will help reduce capital requirements and achieve the best specifications. Click here to read more.
Capital Allowances for GP Surgeries - updated introductory briefing available here.
Will the new Towns Fund create the growth conditions in 100 towns and cities that will create the opportunity for upgrading tired commercial property assets and contribute to the zero carbon journey - click here to read the article.
'Capital Allowances and the UK's zero carbon target' - a new paper considers the use of EPCs and accelerated plant & machinery allowances to replace the outgoing Enhanced Capital Allowances system - click here to read.
'Capital Allowances through the prism of 2019' - a paper submitted to HMRC/HMT following a discussion with a representative team of Capital Allowances advisers the government at the RICS - click here to read.
Property purchase claims changed dramatically in 2012 but have not gone away altogether and can still be valuable opportunities. Click here for our update guide.
Who wants to be an AIA millionaire? With a two year window of opportunity, it is a good time to dust-off the file of a possible improvement or upgrade. See our guidance note here.
Budget 2018 - Annual Investment Allowance (AIA) increased to £1m per annum for two years from January 2019. New Structures and Buildings Allowance (SBA) introduced from April 2019 providing 2% per annum straight line deprecation of the cost of new structures, including works of renovation. To see illustrations click here.
The Office of Tax Simplification reported on its review of Capital Allowances in June 2018.
We prepared submissions on behalf of the UK Green Building Council, and the Primary Care Premises Forum and have issued new briefings in light of the OTS report. Click either name to read.