Capital Allowances

Property Embedded Fixtures & Features

You might not be aware that there are embedded fixtures and features within a commercial property that can be claimed against Capital Allowances. Immoveable items including; lifts, heating systems, security systems, sanitary ware, electrical systems and kitchens can be claimed under CA provided that these items were either inherent in the property at the time of acquisition or subsequently installed.

The government strongly encourages companies to use Capital Allowances (CA) to relieve expenditure when investing in equipment for their businesses. Not only does this incentive provide a legitimate and safe form of tax planning for investors in commercial property, but it’s also an important lever for economic growth.

The Croner Taxwise Capital Allowances Review Service will strengthen your client relationships by achieving tax benefit for clients whilst also generating extra income for your Practice. Even if your Practice currently offers elements of a Capital Allowance Review Service our CA experts can enhance it for you.

Our process requires minimal effort from you or your clients. Our team of tax depreciation experts includes Accountants and Surveyors who will help maximise the claim. We even review your client’s property portfolio at no cost to ascertain whether a claim can be made.

PLUS: We pay a referral fee to your Practice of up to 10% of the fees.

Capital Allowances are available to all types of commercial property owners, including pubs, restaurants, veterinary practices and gyms. The chart below shows just a small selection of successful claims that our specialist consultancy team have made over the years.
capital-allowance-diagram

  • We take responsibility for the whole claim process

    • We specialise in highlighting the tax allowances available through the Property Embedded Fixtures and Features of commercial property.
    • Unlike many providers, we manage the process from start to finish
    • Our consultants have a 100% claim success rate and over 16 years have used their expertise to generate a claim total of over £100,000,000
    • Fees are based on a viable claim – no claim, no fee
    • We provide advice to accountants as to how to apply for the benefit
    • Fees are tax deductible
    • There are no hidden charges or extra fees
    • There is no need for invoices – valuations are part of the process
    • We carry full professional indemnity cover and have no disclaimers in place that could negate our advice or affect our responsibility
  • How we do it

    • We do not waste your client’s time, your time or ours – we check there is a viable claim at no cost to you
    • We carry out a physical survey of the property and compile an accurate inventory listing the qualifying items. We then have this independently valued.
    • We apply a full level of due diligence ensuring there are no duplications and that the claim is credible.
    • We submit the claim to HMRC on your client’s behalf and monitor its progress, taking full responsibility.
    • All parties are made aware of the legalities relevant on future property disposals and acquisitions where a claim has been made. The correct advice is vital.
  • FAQ's

    Q. We’ve already dealt with capital allowances. It’s been done already, hasn’t it?

    A. Most accountants do provide capital allowances advice. However, we have consistently been able to generate significant extra value by identifying opportunities to increase and accelerate tax savings. This is because we have specialist advisors who can survey and analyse the property in detail in order to find the often hidden elements of fixtures and fittings.

    Q. What if this causes problems with HM Revenue & Customs?

    A. HM Revenue & Customs are used to dealing with these claims and our specialist advisers will deal with all stages of the process. In the unlikely event of any issues being raised, it is part of our service to resolve any queries.

    Q. Will this affect my client’s capital gains tax or reduce the value of the property?

    A. When the client comes to sell the property, this will in no way affect their capital gains tax liability and the client cannot be taxed on a tax repayment. Capital allowances are a statutory right and are not taken into account when the property is valued for commercial or accounting purposes.

    Q. My client bought the property 10 years ago. Can they still claim?

    A. Yes. It is possible to claim capital allowances in any later years’ tax return, as long as the assets are still owned in that later tax year.

    Q. My client doesn’t have sufficient taxable profits to benefit from capital allowances. I presume there is nothing for my client to gain?

    A. In our experience, it is always best to identify capital allowances qualifying expenditure promptly for a number of reasons. Firstly, your client may have other income, or profits elsewhere in a group of companies, that the capital allowances can be set against. Secondly, when your client does become profitable and has used all of the carried forward tax losses, the capital allowances will be invaluable. In addition, many allowances can also be ‘disclaimed’, which means identifying and agreeing on the amount qualifying for tax relief up-front, but choosing to defer the claim for relief until it is actually needed. We have seen a number of businesses who have failed to claim capital allowances because they are loss-making and then also not making a claim in later profitable years when they need the relief.

    Q. It sounds too good to be true. There must be some hidden costs?

    A. There are no hidden costs. Should we fail to identify an additional £50,000 in unclaimed capital allowances, there are no fees at all. In short, there is no catch; They have paid this money out – why shouldn’t they get some of it back?

  • What our customers say

    Office Premises

    Claim Amount: £291,000

    Immediate Tax refund: £47,650

    The end result was the survey showing £291,000 of the plant out of a total property cost of £1.1 million. My client is a limited company but in the 32.75% tax band so is likely to get tax relief of £95,300 in total. The immediate impact is a tax refund off £47,650!

    Care Home

    Claim Amount: £280,000

    Immediate tax refund: £17,000

    The Croner Taxwise team discovered £132,000 of property embedded fixtures and features which may have remained unclaimed. We now know claiming the full value of allowances is a specialist tax with massive benefits if done fully.

    Hotel

    Claim Amount: £452,000

    Of the £1,700,000 our client spent on their hotel, property embedded fixtures and features valued at £452,000 were highlighted. We will add this to their clients allowance pool to further reduce future tax liabilities.

 

Download our Capital Allowances Brochure.

Download

 
Not a partner but interested in this service? Speak to one of our consultancy experts today on 0844 892 2776