CAS - Sectors - Warehouses
A warehouse is a structure designed for the storage of goods, utilised by manufacturers, importers, exporters, wholesalers, transport companies, customs, and others. They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages.
Based on both retail and industrial warehouses and distribution centres, typical build costs can vary from £800/£900 per m2 for a shell of a retail warehouse to £1,500 per m2 for the construction of a High Bay Warehouse (16m-24m high).
Given the relatively high level of costs involved in the construction of warehouses and distribution centres, the availability of capital allowances is a highly lucrative tax relief.
No upfront fee
Our team, are here to build a long term relationship with you and your business, and that's why we don't need hourly rates or day rates - we only bill when your claim is successful.
£55m+
Unlocked for our clients through well prepared, robust and successful UK commercial tax relief claims.
£121bn
Was the total value of UK Capital Allowances claims minus balancing charges in the 2021 to 2022 financial year (HMRC Stat).
In the UK, capital allowances are categorized into different “pools” which determine the rate at which you can claim tax relief on your capital expenditures. Here are the primary cost pools for claiming UK capital allowances:
This pool typically includes most plant and machinery used in a business. The main pool qualifies for the Writing Down Allowance (WDA) at a rate of 18% per year on a reducing balance basis.
The special rate pool includes assets that have a slower depreciation rate and qualifies for the WDA at a rate of 6% per year on a reducing balance basis.
Introduced for contracts entered into on or after October 29, 2018, the SBA allows businesses to claim 3% per year on the cost of constructing, renovating, or converting non-residential structures and buildings. This allowance is claimed on a straight-line basis over 33 1/3 years.
Qualifying items can include pieces of plant and machinery such as fire safety equipment, CCTV systems, racking and pallet systems and sanitaryware. Allowances are also available for a variety of integral features such as electrical power and lighting, heating and ventilation, and hot and cold-water systems. Depending on the type of warehouse they may include extensive chiller and cooling spaces especially when dealing with food products which may spoil.
Since the 29th of October 2018, an additional allowance referred to as Structures and Buildings Allowances has been available for eligible expenditure. This has significantly improved the level of return from capital allowances reports for new build purchases and new construction/fit out works.
Capital Allowances are also available on the purchase of second-hand properties often referred to as embedded capital allowances claims. When you purchase a property, you also purchase all of the assets embedded within the building itself such as the pipework, electrics, sanitaryware and heating, etc. If you (as the buyer) are the first person able and eligible to claim capital allowances, then you are entitled to complete an embedded claim to quantify the allowances available following the purchase of the property.
Our team comprises seasoned tax professionals and surveyors with extensive experience in the nuances of capital allowances. We stay abreast of the latest legislation and best practices, ensuring you receive the maximum relief available.
We conduct thorough assessments of your capital expenditures, meticulously identifying all qualifying assets. From plant and machinery to integral building features, our detailed approach ensures nothing is overlooked.
COFFEE SHOPS & CAFES
PUBS & RESTAURANTS
HOTELS
CARE HOMES
INDUSTRIAL & FACTORIES
OFFICES
NURSERIES & CHILDCARE
FURNISHED HOLIDAY LETS
WAREHOUSES
DOCTORS OFFICES & SURGERIES
RETAIL STORES
TRANSPORT & LOGISTICS
DENTISTS
VETS
FARMS & AGRICULTURAL
COMMERCIAL CONSTRUCTION
Claiming capital allowances may seem hard at first, but at the BSE Group, we’re here to help you through the process. Our time within the financial field has given us the expertise needed to help your business claim tax relief. Unlock the hidden value in your capital expenditures with our help.
Contact us today for a free initial consultation and see how our Capital Allowance Team can transform your tax strategy and enhance your financial performance.
