Capital allowances are akin to a tax deductible expense and are available in respect of qualifying capital expenditure incurred on the provision of certain assets in use for the purposes of a trade or rental business. They effectively allow a taxpayer to write off the cost of an asset over a period of time. Ken Hardy and Damien Flanagan of our Capital Allowances team explain.
We have extensive experience of preparing the following claims:
The purchase of new or secondhand properties.
The fit-out / repair / refurbishment / extension of properties including the following:
Your entitlement to claim has not been established properly; this is a complex tax technical area
Our team will undertake the following actions to prepare your claim:
Our claims are prepared in line with Revenue practice, precedents and the principles established from case law and we would be confident, as a result of our extensive Revenue experience, that the positions adopted in our analysis would stand up to Revenue scrutiny.
Due to the volume of claims we have prepared, our clients can be confident that our experience allows us to identify fully maximised and compliant capital allowances/tax depreciation claims. Our team has extensive practical experience in the following areas:
Since our foundation, we have built a bespoke claim methodology that has been tried and tested under a significant number of Revenue audits. Our credentials and experience of negotiating and delivering claims are second to none.
Client: A private hospital group.
Project: A major expansion project.
Claim: We identified c. €19m of qualifying expenditure.
Benefit: The client received a tax benefit of c. €2.5m.
Client: An Irish clothing retailer.
Project: Store upgrades / fit-outs.
Claim: We assisted the client with a claim of c. €18m.
Benefit: The client received a tax benefit of c. €2.2m.
Client: An Irish logistics service providers.
Project: Depot refurbishments and upgrades.
Claim: We identified c. €6m of qualifying expenditure.
Benefit: The client received a tax benefit of c. €800k.
Client: A landlord
Project: Office fit-out / refurbishment including a new extensions.
Claim: We assisted the client with a claim of c. €1.8m.
Benefit: The client received a tax benefit of c. €460k.
Client: An Irish manufacturing company.
Project: A new production plant.
Claim: We assisted the client with claims for wear and tear allowances of c. €6m and IBAs of c. €4.5m.
Benefit: The client received a total tax benefit of c. €1.3m.
Client: A US multinational in the medical devices industry.
Project: An existing production facility and extension.
Claim: We assisted the client with a successful reclassification of IBAs to plant and machinery.
Benefit: The client will receive a time value saving of €1m, and a refund of c. €500k from Revenue.
KPMG’s Tax Depreciation Group is recognised as Ireland’s primary capital allowances specialists. We are the only Big 4 firm in Ireland to have a dedicated capital allowances team.
Contact Ken Hardy or Damien Flanagan of our Capital Allowances team if you think you may be in a position to benefit from tax depreciation/capital allowances. We would be delighted to discuss your particular circumstances or carry out an initial assessment of your capital expenditure to see if there is a potential opportunity for us to assist – this is, of course, offered to you at no cost. Alternatively, you can e-mail us via email@example.com.
We will endeavour to respond to your initial query within two working days.