We are pleased to disclose that Taxation has used the following content in this month’s newsletter to their subscribers.
Have you or your client spent capital buying or improving commercial property?
You or your client are probably sitting on significant hidden tax savings just waiting to be released through a Capital Allowances claim.
Since the acquisition of a freehold property in 2006, our client, a public sector company, expanded and acquired the lease of two additional properties.
Improvements to the leasehold properties were completed in 2016 and significant tax savings of £24,909 were generated by claiming the embedded fixtures and features in all three properties.
A client (Purchaser) engaged Capital Allowance Review Service at the draft contracts stage and purchased their property in 2016. With accurate advice and documentation for both Vendor and Purchaser from CARS, a capital allowance claim was completed to satisfy legislation.
As a result of CARS completing and supplying the legal documentation, a tax savings of £78,000 was generated.
This business occupied premises which were owned by a self-owned company. But the rental income it received, as a result, was liable for the tax. So using its expert knowledge, a CARS survey uncovered more than £88,000 of expenditure on fixtures and fittings in the property which qualified for tax relief.
As a result of their higher rate tax status, this meant CARS’ client could make a tax saving of more than £35,000. Items which qualified for the relief included extractor fans, an intruder alarm system, air conditioning, a boiler, toilets and non-slip flooring.
A client who started in business with a single care home in the mid-1980s evolved to become a major provider of residential and supported living services for people with a range of health conditions.
Capital Allowance Review Service surveyed all 32 properties it owned and found typical accounting routines hadn’t maximised the capital allowances available from the considerable sums been spent on installation of and improvements to a variety of embedded fixtures and fittings in all of the buildings.
As a result, a claim for Capital Allowances against £1.8million of qualifying expenditure was lodged, and this resulted in a reduction in the business’s tax liabilities of £648,000*.
- As this claim was submitted and completed in 2010, the saving figure is based on tax rates applicable between 2008 and 2014.
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