Revenue Tax Relief (RTR)

This provides tax relief on the day-to-day running expenses associated with owning and running a business. For properties, this covers the repair or maintenance of assets.

If asset expenditure is classified as revenue in nature for accounting purposes, it is 100% deductible. When the expenditure is part of a larger refurbishment scheme, the whole amount may be capitalised. For tax purposes, the expenditure does not lose its revenue nature.

Successful claims are dependent on a thorough working knowledge of case law and HMRC standpoint.

Tax relief is received in line with the assets’ depreciation rate

Numbers
An investor incurring capital expenditure of £500,000 on retail refurbishment:
Refurbishment expenditure	£500,000
Expenditure qualifying for Revenue relief (say 50%)	£250,000
Overall tax saved through relief	£57,500
(at 23%)

35% cash saving = £69,000

www.rocheassociates.co.uk
Head Office Saira Puffett T: 01923 428 746 E: sairapuffett@rocheassociates.co.uk	Southern Office Paul Munday T: 01794 899 028 E: paulmunday@rocheassociates.co.uk

Revenue Tax Relief (RTR)

Numbers

An investor incurring capital expenditure of £500,000 on retail refurbishment: