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How do Capital Allowances Work?

Capital Allowances are a deeply specialist area. Only experts will know exactly what a business can claim for and how much.

Capital Allowances are a tax relief designed to incentivize business owners like you to improve their commercial properties. They have been around for decades and are a well-recognized part of the UK tax landscape. They are allowances that provide relief to tax for expenditure incurred improving a commercial property. Any item of expenditure which has an “enduring benefit” to the business can qualify for relief.

“Embedded” Capital Allowances or “Property Embedded Fixtures and Fittings” are items that are part of the fabric of the building which are screwed in, bricked in, nailed in, and plastered in. They are items that are regularly missed by standard accounting practitioners and a could be a source of a considerable financial award for you!

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.

How does the claims process begin?

The first step is to arrange a free, no-obligation consultation online or in-person. 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. The purpose of this meeting is to find out about you and your business, explain the process clearly, and answer any questions you have. We will also agree on the scope of the service, how it is charged for, and agree on terms.

Do you contact my accountant?

Yes, after the consultation we will contact your accountant to obtain your accounts for the last 2 years of trading. We will check that no claims have already been made and also ascertain certain “housekeeping” items such as how you pay tax and at what rate.

How do you work out what I can claim for?

We will send a qualified surveyor to your commercial property to undertake a full and detailed survey of what items are present in the property which might give rise to a claim. Our surveyors are exhaustive in their approach and record everything which may be useful and admissible in justifiably increasing your claim. Our expert surveyors are able to allocate costs to each item of expenditure using recognized costing breakdowns. The survey produces a technical report which is presented to our tax accountant.

How do you present the claim to HMRC?

All of our claims are constructed in accordance with HMRC guidelines. Using the survey report our tax accountant will advise your accountant on how to amend your tax return.

How long does the process take?

The process usually takes between 8 to 12 weeks from start to finish.

Will HMRC investigate the claim?

A Capital Allowance reclaim does not make use of a loophole. It is there to incentivize business owners like you to develop and improve their commercial properties. HMRC does investigate a small number of claims but that is not something to worry about and it will be dealt with on your behalf.

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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