Embedded Capital Allowances – Millions in unpaid tax relief

It is a good start if your Accountant recognises that your claim requires a specialist survey, at least then you have a fighting chance that your claim will include all claimable expenditure.

Are you claiming the Embedded Features and Fittings within a commercial property that are essential to carry out your trade? Often, these items can be missed because a room by room survey hasn’t been carried out by experienced surveyors and tax specialists.

These usually amount to an enormous wealth of unclaimed immoveable items, on which capital allowances can be claimed. Such as: lifts, heating & cooling systems, security systems, sanitary ware, electrical systems, kitchens and other items, which if the building was turned upside down, would not be displaced.

The benefit can be claimed by the party that incurred the expenditure when purchasing a commercial property or funding refurbishment or extensions.

Case Studies:

Our Associates have many very satisfied Clients, here are a few examples of the numbers:

Lake District Hotel purchased in 2007                                                                    Claim amount £163,000

Hotel 2 purchased in 1996                                                                                             Claim amount £113,357

Hotel 3 purchased in 2007                                                                                             Claim amount £452,000

Care Home purchased in 1997                                                                                    Claim amount £132,000

Golf Club purchased in 1990                                                                                        Claim amount £280,000

Office purchased in 2005                                                                                               Claim amount £291,000

 

Typical Examples of Embedded Capital Allowances:

• Hotels or similar
• Caravan Sites
• Nursing/Rest homes
• Factories and manufacturing
• Leisure facilities
• Filling stations and garages
• Workshops and warehouses
• Depots and haulage yards
• Transport facilities (road/rail/sea/air)
• Professional offices
• Shops/Showrooms
• Refrigerated storage
• Garden centers

It is prudent to review your situation as changes in legislation in 2014 may result in Commercial Property Owners missing out on substantial tax benefit.

As a commercial property owner, I benefitted from working with a specialist in this field. I was that impressed with the experience and overall result (a total of £150,000 in legitimate tax relief claimed) that I decided to include this service within The Advice Room.

This substantial benefit was claimed because our day to day management Accountant was aware of the property purchase(s) and knew of a reputable, dependable specialist to recommend.

Don’t allow professional snobbery or ignorance on the behalf of your professional Advisers to impact on your ability to claim.

For more independent information visit: www.gov.uk/capital-allowances/what-you-can-claim-on

Ask your Accountant or feel free to ask us, as we know the benefit of having pro-active Advisers around us!