Who qualifies for capital allowances relief?
If you are a UK taxpayer and own a commercial property then there is a very good chance you will be due a sizeable tax benefit as a result of unused capital allowances.
Even though you may have received valuable advice from your accountant, we are specialists in this area with a fully up-to-date understanding of the legislation, and are confident we will be able to secure additional tax benefits on your behalf.
What can I claim for?
Your accountant will claim for you on everyday purchases such as curtains, carpets, fire extinguishers and IT equipment.
However, generally speaking accountants will not drill down to the items where the far more significant costs to a business lie, e.g. cabling, air conditioning, heating systems, lighting, security systems, plant and machinery items.
Specialist capital allowances firms, on the other hand, draw on a far more detailed understanding of capital allowances practice and law and carry out an in-depth forensic survey of the property (or properties) in question.
We will work with you and your accountant to make sure that absolutely every opportunity for capital allowances tax relief has been identified and claimed for.
What is HMRCâ€™s role?
HM Revenue & Customs created capital allowances legislation in order to encourage more commercial property investment by individuals and businesses.
They are therefore very skilled at processing these claims and our specialist advisers liaise with them on a daily basis, on your behalf. In the unlikely event of any issues being raised it is part of our service to resolve these.
Will this affect my capital gains tax or reduce the value of my property?
Not at all. When you come to sell your property, the capital gains tax and property value will be unaffected. Capital allowances are a right, not a privilege
I bought my property 10 years ago. Can I still claim?
Yes, absolutely. Reviewing the property purchase ensures that you donâ€™t miss out on any tax refunds from previous years. It is possible to claim capital allowance in any open tax year.
It sounds too good to be true. There must be some hidden costs?
Should we fail to identify at least Â£50,000* in unclaimed capital allowances for you, then there are no fees for you to pay whatsoever.
We work on a â€˜no claim, no feeâ€™ basis as we feel it is the fairest way to work with our clients.
*Subject to terms and conditions
My accountant already deals with our capital allowances. Isnâ€™t this something they should have done already?
Most accountants provide some form of capital allowances advice. However, capital allowances claims are ideally suited to being dealt with on a stand-alone basis separately to other tax matters.
We are capital allowances specialists with a different skill-set and a more detailed and up-to-date understanding of capital allowances than most advisers who deal with the issue less frequently than us.
Therefore we have consistently been able to generate significant extra value by identifying opportunities to deliver significant tax benefits.
We will work alongside your other advisers and accountants without any conflicts of interest to ensure a positive outcome. Indeed, your accountant will sign off our work before it is submitted to HMRC.
I donâ€™t have sufficient taxable profits to benefit from capital allowances. Should I bother with them?
Yes. In our experience it is always best to identify capital allowances qualifying expenditure promptly.
Firstly, if you have other income or profits elsewhere in a group of companies, the capital allowances can be set against this.
Secondly, when you become profitable and have used all your carried forward tax losses, then the capital allowances will be invaluable.
Many allowances can also be â€˜disclaimedâ€™, which means identifying and agreeing the amount qualifying for tax relief up-front, but choosing to defer claiming the relief until it is actually needed.
In many cases we have unfortunately seen businesses fail to claim capital allowances because they are loss-making, and then not claiming in later profitable years when they need the relief.