International Tax Depreciation Analysis
Who needs it?
Anyone investing in the construction of new property or acquiring investment real estate throughout the world.
What is it?
Along with other countries throughout the world where the tax regime is based on the UK model, the UK operates a system of capital allowances for expenditure incurred on property assets. However, many other countries operate a system of tax depreciation for expenditure incurred on real estate. Such tax depreciation regimes allow for buildings to be depreciated at rates of between 2% and 4% and in some cases higher. The legislation in countries where systems of tax depreciation operate, usually allows for much higher rates to be applied to the various component parts of the building such as air conditioning installations, lifts, computer installations etc. The problem is that because accountants are usually given the task of identifying the cost of such assets they experience real difficulties in doing so because of their lack of construction expertise.
Capitus has developed an approach that first of all allows us to advise on the tax depreciation rules in each jurisdiction and then to liaise directly with our clients' accountants in each jurisdiction, if required or alternatively to refer to our own network of accountants in each individual country.
This approach ensures that any expenditure incurred on the construction or acquisition of assets abroad will be categorised in the most tax advantageous way possible.
Capitus has acted worldwide on similar basis with very tax-advantageous results.
Please call 0121 447 8388 or e-mail enquiries@capitus.co.uk for queries on any of our services. We will personally get back to you. Our initial advice is free!
