- Capital allowances can make up between 15% and 35% of the total value of the property. Once approved, this represents significant reduction in your tax bill.
- An example, with a hotel valued at £1M, the surveyor would expect to value capital allowances of 30% or £300,000. If the hotel was owned in a personal name and you were a higher rate tax payer, you would earn £300,000 completely tax free. When paying 40% tax, that’s a saving of £120,000