Capital Allowances for Business Property Purchases
Uncover £10,000’s of unclaimed Tax relief
Capital Allowances Explained
Capital Allowances are a form of tax relief that applies to commercial property and the fixtures, plant, equipment etc. within them. You can retrospectively claim for items embedded within their property at the point of purchase.
This includes bathroom/toilet fittings, lighting, fire safety systems, security systems, electrical wiring, air conditioning and many other items that can be classified as “plant & machinery” under HMRC guidelines.
Capital Allowances reduce your taxable profits, meaning you pay tax on a smaller figure and retain more of your profits.
Won't my accountant be doing this already?
Most general practice accountancy firms would be claiming asset capital allowances on movable items of plant and machinery (IT equipment, machinery, vehicles etc). However due to the difficulties of accurately valuing systems imbedded in a property and the maze of case law in this area, the services of a specialist are required to access the property capital allowances.
In most cases, property owners are entitled to claim capital allowances on part of the price paid to buy the property. For some buildings, this can be up to 40%.
Items eligible for capital allowances
- Water and Heating Systems
- Beer/Wine Pumps and Taps
- Telephone and TV Points
- Kitchens and Bathrooms
- Carpets and Floor Coverings
- Underground Pipework
- Lighting and Electric Systems
- Security and Fire Alarms
- Reception and Bar Counters
- Door Locks and Handles
Other qualifying items include:
- Cold water systems
- Ventilation systems
- Water heating systems
- Lifts and escalators
- Air-conditioning or cooling
- Swimming pools
- Building extensions
- Infrastructure
Who Can Claim?
Owners of business property, freehold or leasehold, and paying UK corporation tax or UK income tax.
Business property owners are eligible to claim if they are a company, sole trader or partnership and are carrying on a trade or a property letting business.
IS THERE A TIME LIMIT?
There is no time limit to make the claim, providing you still own the property and the fixtures in the tax year you submit the claim. This means that even if you bought your property in the 1980’s, 90’s or sold it up to 2 years ago, you may still be able to claim the tax relief now
What we offer
No Win No Fee
O win no fee service with no upfront costs. Our fee is based on a percentage of the allowances we find.
FREE SURVEY
Free, no obligation property survey to identify the full scope of fixtures that qualify.
COMPLIANT WITH HMRC
We comply will all UK tax legislation and HMRC guidelines.
QUICK AND SIMPLE
We make the process quick and simple for our clients. A cash rebate could be in your bank in as little as four weeks.
END TO END SERVICE
Unlike other advisors we don’t just prepare the report, we do all the work from beginning to end.
1. Eligibility evaluation
We carry out face-to-face onsite visits to identify the true value of your qualifying activities and associated expenditure, to achieve an optimised financial benefit.
What is the claim process?
We make the process of claiming capital allowances simple by doing all the hard work for you.
See our simple 5 step process below:
1. Initial Consultation
During the initial consultation we discuss the background to claiming capital allowances and how this may apply to your property. At this stage we will require some basic information to enable us to pre-qualify you for a claim. For example, purchase price, date of purchase, type of property, your tax position etc
2. Validation
At the validation stage a member of our technical team will review the case and determine whether you have entitlement to make a claim and calculate the potential tax savings you can obtain. If you then wish to proceed with a claim, we will carry out our client onboarding.
3. Survey
Once our client take onboarding process has been completed, one of our experienced surveyors will carry out a capital allowances survey of your property.
4. The Capital Allowances Valuation Report (CAVR)
Once the survey is complete our technical team prepare a report that values the building structure, the land and all the qualifying fixtures within the property. This report is then sent for approval, either to yourself or your accountant.
5. Submission to HMRC
Once the CAVR is approved, we will submit the report to HMRC. If required, we will deal with any queries from HMRC, however we generally find that our reports rarely generate any queries.
The process for most claims takes approx. 6-10 weeks from start to receiving your refund.
How much tax could I save?
Our process is fully compliant with HMRC and designed to get our clients the maximum tax refund.
- Offices 15% - 35%
- Industrial units 10% - 30%
- Furnished holiday lets 20% - 40%
- Hotels and B&Bs 20% - 45%
- Care homes 25% - 50%
- Doctors/Vets 15% - 35%
- Retail units 10% - 30%
- Pubs & Restaurants 10% - 40%
Example
- Purchase price £400,000
- Est. capital allowances £80,000 - £160,000
- Total tax savings £15,500 - £30,500
- Cash repayments £5,000 - £12,000 (basic rate of taxpayer)
The repayments would be double for higher rate taxpayers.
Building types we claim capital allowances on:
- Offices
- Vets and Animal Care
- Nurseries
- Holiday and Residential Parks
- Hotels and B&B’s
- Funeral directors
- Manufacturing Care homes
- Self-catering
- Hairdressers and Salons
- Haulage
- Call centres
- Solicitors
- Pubs and Restaurants
- Doctors
- Education and Training facilities
- Accountants
- Kennels and Catteries
- Travel agents
- Shops & Retailers
- Dentists
- Furnished Holiday Lets
- Garages
- Factories and warehousing
- Others
Ready to apply?
If you’re ready to apply for R&D tax refund, please call us on the freephone number below or use the contact form and one of our helpful team will be in touch to help.
By completing the above contact form you consent that Tax Bright can contact you with regard to an R&D Tax Credits claim and use your details during any future claims.
Your details will not be used for any other purpose and you can request us to stop contacting you by using one of the methods listed in the privacy policy.
