What are capital allowances?
Capital allowances save money and are the only means of providing tax relief for capital expenditure incurred by both Irish and overseas taxpayers on residential and commercial property. It is an incentive to invest as you can offset tax on profits by the amount of allowances claimed. Capital allowances therefore, reduce taxable profits for companies, businesses and individuals and should always be considered as early as possible.
Any property or construction transaction can give rise to an opportunity to claim allowances and when you have made a claim, you should take steps to protect your benefit even if you plan to dispose of the property or asset that gave rise to the claim.
What can you claim?
Over decades, case law and legislation have tried to define what can be claimed, but the position is still by no means clear. That is why a specialist is needed to maximise what can be claimed on each type of property and transaction.
At Grant Thornton, our dedicated capital allowance and tax depreciation team have successfully prepared, negotiated and settled claims for all types of property investments for a wide range of clients, from individuals and small companies to large multinationals.