Valuation & Cost Attribution

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Valuation and Cost Attribution for Capital Allowances

Accurate valuations and cost attributions are a critical part of a successful Capital Allowances claim, particularly when detailed cost records are unavailable, or assets were acquired as part of a wider transaction. Our team includes not only Corporate Tax experts, but also Chartered Quantity Surveyors who ensure that expenditure is correctly identified and allocated. In addition to this, our team ensures that valuations are sensible to strengthen the merits of any claim.

Capital Allowance claims often require a clear breakdown of total expenditure into the various categories, and this is particularly the case where itemised breakdown of invoices are incomplete, or in respect of second-hand property acquisitions. In these cases, a detailed valuation exercise is typically required to ensure that values are correctly attributed to the various components of works.

Our experts use a combination of market data, cost modelling, and industry benchmarks to ensure that sensible values are placed, to enable a comprehensive Capital Allowance analysis to be undertaken.

Our approach is as follows:

  • Valuation of fixtures & fittings – we identify qualifying fixtures and fittings embedded into commercial property using RICS compliant valuation methodologies.
  • Attribution of purchase price – where commercial property is being purchased / sold, our experts can advise on how much of the total purchase price relates to items which qualifying for Capital Allowances.
  • Historic cost reconstruction – where detailed invoices or cost records are missing or incomplete, our experts use their expertise, backed by data, to attribute values and costings.
  • Preparation of supporting reports – we produce a detailed report in support of your Capital Allowance claim, providing a clear audit trail.