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Capital Allowances - Fact-Checking The Fake News


Fact-Checking The Fake News

Before coming to this website had you heard of Capital Allowances?

If so what had you been told? That if you claimed them you had to pay more Capital Gains Tax? That you had to have receipts for all the items you claimed for? WRONG!

We’ve written this article to dispel some of the most common myths around Capital Allowances so business owners don’t miss out.

Within a commercial property valued at £750,000, there may be as much as £240,000 in unclaimed Capital Allowances. For a property owned by an individual that equates to a tax refund or future saving of as much as £96,000.

That’s a hell of a thing to miss out on!

1 – Fake News Headline – I don’t know how much I spent improving my property so of course, I can’t claim!

Fact Check – You do not need to know how much you spent on improving your commercial property. Our expert surveyors are able to allocate costs to each item of expenditure using recognized costing breakdowns.

2 – Fake News Headline – My Accountants will have claimed for this……won’t they?!

Fact Check – You may be sure that your accountant will have already done a claim but in a lot of cases, this is not a reasonable expectation. It is a technical process and requires a high level of understanding of what can be claimed and what HMRC wants to see in a claim.

3 – Fake News Headline – We are out of time to make claim…aren’t we?!

Fact Check – It is ALWAYS worth checking with a specialist company whether there are claims that you have missed. We only charge on success, so you have nothing to lose and a lot potentially to gain.

4 – Fake News Headline – We make a loss so we cannot benefit from making a claim

Fact Check – You may not have paid Income Tax or Corporation Tax in the last year or 2 BUT you may be able to reduce your tax burden in the next few years. We only charge on success, so you have nothing to lose and a lot to potentially gain.

5 – Fake News Headline – Making a Capital Allowances will increase my CGT bill when I sell!

Fact Check – It may seem counter-intuitive, but this is almost never the case. A capital allowance reclaim almost never decreases the buildings’ base cost for CGT purposes. This is confirmed by s41(1) TCGA 1992.

6 – Fake News Headline – The previous owner claimed so I can’t.

Fact Check – This is not always the case. Allocations made on the sale of a property may not reflect the true value of claimable fixtures and fittings within the building. They are generally made for the purposes of Stamp Duty and as such can be “rough and ready” or inaccurate. It is ALWAYS worth checking with a specialist company whether there are claims that have been missed. We only charge on success, so you have nothing to lose and a lot potentially to gain.

Would you like to find out more?

If you would like to arrange a free, no-obligation consultation online or in-person, just contact us however you feel most comfortable and we will be in touch to get the ball rolling. We don’t do the hard sell; we just want to know as much as we can in order to help you as much as we can.

How do I get started?

Just contact us however you feel most comfortable and we will be in touch to get the ball rolling.

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