Coronavirus - tax incentives for construction and property projects


Michael Murray

Michael Murray

Construction & Property Incentives Partner


With the coronavirus crisis affecting all areas of the economy, now more than ever may be the time to consider the cash flow savings that can be realised from reviewing current and historical expenditure on construction and property projects. 

Reviewing your cash flow and reforecasting accordingly for the short-term is essential during this turbulent time, and tax incentives can play a part in this.

Tax incentives

The available reliefs in the UK tax system have the potential to reduce tax liabilities or could in certain situations, even result in a valuable repayment from HMRC.

We’re working closely with our clients at the moment to help identify where incentives may be available on current as well as historic expenditure to help realise potential positive cash flow opportunities.

Qualifying expenditure and reliefs

As a business you should consider whether you have incurred expenditure on any of the following:

  • Property acquisitions
  • New build developments
  • Refurbishments
  • Fitting out works
  • Capital contributions
  • Tenants improvements

If you have, you could qualify for one or more of the following tax reliefs:

  • Capital Allowances and Enhanced Capital Allowances (ECAs)
  • Land Remediation Relief (LRR)
  • Revenue deductions

For loss making companies there are repayable tax credits available in relation to ECAs and LRR.

Recent tax returns and potential refunds

Our Construction & Property Incentives team at Johnston Carmichael can identify the most efficient way of accessing tax savings and unlocking funds, by working either with our own specialist tax teams, or through proactive conversations with your existing advisers. Regardless of when the capital expenditure was incurred, claims can be made in any open corporate or income tax returns.

And if you are eligible for a claim and this wasn’t included in your recent tax return, it is possible to refile the tax return promptly for an immediate refund from HMRC, which would offer a welcome boost to your cash flow at this challenging time.

We’re here to help

We’re working with businesses to assess their current and historical expenditure on projects now and we would be delighted to help you too. Get in touch with me Michael Murray or Robert Winters to find out more. We’re on hand and we’re ready to help.