Capital Allowances Claims

Through our membership of STP (Strategic Tax Partners) we can provide a comprehensive service in respect of Capital Allowances.

Most tax payers regularly claim tax relief on capital expenditure. However, ensuring that these capital allowances are maximised can be a difficult exercise. To add complexity to the challenge, both legislation and case law are constantly changing regarding how types of capital expenditure are treated.

In the case of a second hand property purchase, the construction cost information can be minimal or even non-existent. In these circumstances an adviser, who has both construction and tax knowledge, is required to survey the property and then make assessments to provide the information required to make a capital allowances claim.

Many clients wrongly assume that if capital allowances are not claimed in the year of expenditure the capital allowances are ‘lost’. However, as long as the property is still owned by the client, a capital allowances claim can be made a number of years later and the original tax return does not have to be reopened.

Qualifying criteria

• Commercial Property purchased for over £1million
• Owner must be either tax paying or about to pay tax
• Construction or property expenditure over £500k
• Contaminated land
• “Green” plant ie white lighting, air con, boilers etc

Typical opportunity indicators

• You have just moved into new offices which need to be fitted out
• You have just bought a commercial building
• You have incurred recent refurbishment expenditure

Service provider

The service is one of those provided through STP (Strategic Tax Partners) using specialist consultants with wide experience in their field.

The professional team work solely on capital allowance cases and they are all qualified in both quantity surveying and taxation. This combined expertise enables them to identify the more unusual types of qualifying expenditure, which is usually overlooked.

The specialist consultants provide capital allowances advice to private clients, property investors and large multinationals across a wide range of industries. They can usually increase the value of capital allowances by between 20% and 30%.

They have good relationships with HMRC and the Valuation Office, which often means faster and advantageous settlement of capital allowances claims. They boast that in thirteen years of operating they have never had a claim rejected.

Obtaining capital allowances advice can be very worthwhile either at the initial stages of a building or renovation project, or prior to the purchase of a property.

For more information contact us.