4 Investors

If you are a property investor or owner-occupier, the complex area of Capital Allowances may be unfamiliar territory or simply something you prefer to leave with your Accountant.

THIS COULD BE A COSTLY MISTAKE!

Without the expertise of a Capital Allowances Surveyor most Capital Allowances claims are only 70%-80% of what they should be and in some cases no claim is made at all!

What are Capital Allowances

Whilst a business can off set the costs of running the business, such as salaries rent and office supplies against tax, the capital expenditure incurred is not an allowable expense. Instead capital allowances are given on qualifying capital expenditure. To qualify for the tax relief the capital expenditure must be on;

• Plant and machinery - as defined by statute and case law
• Hotels
• Industrial Buildings
• Flats over shops
• Research and Development
• Expenditure on qualifying buildings in disadvantaged areas - BPRA's

Properties that you can claim on include;

• Offices
• Retail shops
• Industrial units
• Care Homes
• Furnished Holiday Lets

Buying and selling property
When you buy a property for business use, the claim you make will be based on what you have paid for the property, providing no one else has claimed before you. It is essential that a full tax due diligence review is carried out before a Capital Allowances claim is made. Some advisors ignore this meaning your claim will not be valid and penalties could be incurred and could even result in a full HMRC investigation.
For more information download our Purchase guide>>

When you are thinking of selling a property, you must also keep in mind the Capital Allowances claim you have made. If you do not include appropriate clause in the sale contract you could find that the Tax Man could claw-back the allowances you have claimed. Often Lawyers are not aware of this so take expert advice as soon as you are thinking about selling.
For more information, download our Selling guide>>

How much could I save?
The best way to ensure you do not miss out on valuable tax allowances is to take advice before you commit to the project or purchase. If, however, you have already acquired a property, there are no time restrictions on how far back you can go, so it's never too late to claim your tax relief! If you are not sure what could be available, we can provide a free, initial, no obligation appraisal. Interested? Just click here>>