What Are Capital Allowances?

When you spend money buying or improving a property, HMRC allows you to offset some of that expenditure against your profits, or general income for tax purposes.

It’s your statutory right to claim

By allowing a retrospective or current acquisition claim based on the purchase price. It is not a contentious tax avoidance scheme or loophole but is based on established UK statutory law dating back to 1878.

You are not a “Guinea Pig” as thousands of cases have already been submitted and paid out.

Will I qualify?

To claim capital allowances you (or your company) must satisfy the following criteria:

• You are a UK taxpayer (Income Tax or Corporation Tax)
• You own a UK commercial property
• OR you own a furnished holiday property either in the UK or within the EEA with a minimum purchase price of £300,000 (collectively)
• The property is not held fully within a pension fund, charity, government owned or traded as stock

Are a specialist capital allowance claims company which is part of the Portal Group that works in collaboration with your existing advisers to identify and create retrospective and current capital allowance claims that lead to significant tax refunds. By adding value , our accounting and surveying experts identify previously unclaimed Capital Allowances reliefs that were part off the purchase price but were never identified during the buying process.

Typically we find Capital Allowances equivalent to 25% of the property’s purchase price and, if we don’t secure at least £25,000 in unclaimed allowances, you won’t owe anyone a penny.

Best of All……

Capital Allowances can be offset against any income, that they derive from.

If a company owns the asset, you can use the allowances against that company’s taxable profits and then against any other company within the same tax group, if a loss is created.

Claims can be retrospective as there is no time limit on how far you can go back , in owning the property and you can even go back two tax years for a tax refund !

What Capital Allowances Can Be Claimed

It is routine for accountants to claim capital allowances for “movable” fixtures and fittings in a shop, for plant and machinery in a factory, or for furniture in a furnished holiday let. They cannot claim such allowances for the “immovable” fabric of the building, however, which is viewed as a non-depreciating asset.

The opportunity we are concerned with is the class of assets in the grey area between “movable” and “immovable”. Clearly office furniture is movable and the roof is immovable. But what about air-conditioning plant, emergency lighting and alarm systems? These are normally considered by accountants as “freehold improvements” and not therefore eligible for capital allowances.

Even when businesses or individuals hear about our service, there is a common misconception that, because the expenditure occurred in the past, they have missed the boat. Not so! Indeed there is no time restriction on when you can claim these allowances.