Capital Allowances for investors
Investors and landlords are perfectly entitled to claim Capital Allowances. Capital Allowances can potentially be released from capital expenditure relating to a program of works or even a substantial proportion of the purchase consideration of a property.
As Capital Allowance specialists our role is to assist you in maximising claims for the Capital Allowances to which you are entitled. This is to make sure the correct amount of tax is paid and not a penny more. There is no need to tip HMRC!
What can capital allowances be claimed on?
Capital Allowances on systems endemic to a building are often missed. Whereas a good accountant should pick up Capital Allowances on loose items of plant and machinery (IT infrastructure, vehicles etc), the Capital Allowances due on the fixtures in a building (electrical distribution, fire alarms, lift etc) are often overlooked. This situation flows from the fact that their value is included in the purchase consideration of a property or sometimes hidden amongst ambiguous construction invoices.
Shouldn’t my accountant be doing this already?
We stress that not advising on Capital Allowances on fixture is no negative reflection on your general accountant. Most of our Capital Allowances work is referred to us by general practice accounting firms. Capital Allowances on fixtures is a highly specialised niche area of tax with over a 100 years’ worth of case law to be mindful of. Furthermore, providing effective Capital Allowances advice requires a marriage of disparate skills from taxation, accounting and quantity surveying that you simply won’t find in any but the very largest accounting firms in the country (KPMG, PWC etc).
STax combines all the skillsets required to provide robust Capital Allowances advice under one roof, making us perfectly positioned to assist you in claiming your full entitlement to Capital Allowances.
Remember, capital allowances are specifically allowed by legislation and all qualifying businesses are entitled to them.
What Capital Allowances can be claimed on will vary from building to building and between different industries. These typically include systems like heating, security, general power, fire alarms and sometimes even the decorative items! These Capital Allowances eligible fixtures would have come into your ownership one of two routes: by undertaking a program of works (development, fitout etc) or by purchasing the property. In both instances you could be sitting on a substantial tax write off.
To put some meat on the bones purchase claims can be as high as 30% to 40% of the purchase consideration i.e. £300k to £400k of tax relief waiting to be released for a property bought for £1m. Construction, fitout and redevelopment projects regularly come in over 50% eligible for Capital allowances. That’s a lot of tax relief not to claim for a statutory relief on capital expenditure you are making anyway!
Is there a time limit to claim?
There is no time limit on how far back we can look i.e. the purchase could have been many years ago. However, what was or wasn’t done during the conveyance can have a big impact on your entitlement to make a claim. Because of this, Capital Allowances advice is generally best given before exchange of contracts. However, here at STax we have a wealth of experience unpicking the history of past purchases and securing favourable Capital Allowances outcomes even where others have tried and failed!
We only charge as a percentage of the extra allowances we find and successfully claim. With no fixed fees or upfront costs of any format charged, as long are you are paying tax it is mathematically impossible to be anything other than better off working with us.
If you own or have incurred capital expenditure on your property and want to find out what you could claim, then please don’t hesitate to contact us today for a free no obligation Capital Allowances appraisal of your assets.