Recently, we have worked closely with a business that saves tax for commercial property owners by generating rebates from Revenue, where suitable. This is achieved by extracting capital allowances from the integral parts of commercial buildings, that are not easily identifiable by accountants.

CAPLUS have worked with the Revenue Commissioners to develop the practice and procedure for establishing valuations, using their expertise in capital allowances to provide a streamlined claims process compliant with Irish Tax Law. A large value of allowances go unclaimed each year but these Capital Allowance experts can unlock much needed cash from businesses.

When capital expenditure is incurred on constructing, refurbishing or fitting out a property, there can be substantial tax savings available on the cost of particular installations know as plant and machinery. This category of expenditure covers many items including building services installations of heating and ventilation, hot and cold water, parts of the electrical systems and other mechanical systems. It also includes a wide range of items defined as plant under tax law and accepted practice.


Capital allowances reduce the amount of tax payable on profits and can also provide rebates on tax already paid in previous years. A valuable cash flow benefit can be obtained through a claim for allowances.


Key Points

  • Allowances reduce the amount of tax payable on profits.

  • Tax rebates can be claimed on tax paid over previous years.

  • Allowances are used over an 8 year period at 12.5% per annum straight line basis.

  • Ability to backdate claim over last 4 years provides rebate potential if tax has been paid in those prior years.

  • Best opportunity to maximise relief is historic expenditure where a 4-year rebate can be made with a further reduction in tax over the following 4 years.

  • Cash benefit of allowances depends on tax rate paid by client. It is greater with higher rate income tax payers and lower with 12.5% corporation tax payers.

  • Relief is available for new builds, refurbished or acquired properties.