Capital Allowances: Hidden but discoverable
All commercial property contains embedded fixtures and fittings, which is vital for the trade to function, however, it’s difficult for standard accounting routines to maximise the qualifying Embedded Fixtures and Fittings within a commercial property that is essential for a business to carry out its trade. These hidden capital allowances are due to insufficient detail and complex legislation.
These items in isolation can seem quite innocuous and leave a substantial wealth of unclaimed ‘Immovable’ items on which capital allowances could possibly be claimed such as:
- heating and electrical systems,
- safety systems,
- bathroom facilities,
- sanitary ware
- even door handles!
Without the immovable items which are either inherent within the property at the time of the acquisition or installed afterward, the building wouldn’t function as a commercial property. Equally the quantity and value of the total of these items can also add up to a substantial amount.
We find the most efficient way of assessing whether tax savings can be achieved is through a conversation with accountants.
There are no doubts that accountants have an established routine for assessing Capital Allowances and therefore it’s important to stress that we’re not questioning their ability. We look to enhance the level of Capital Allowances claimed by introducing additional disciplines that add value to your work. For example, a survey is completed on the property to identify items that are not visible within the paperwork and sit within Land & Buildings on the Balance Sheet (not Fixtures & Fittings)!
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When Should Capital Allowance Review Service get involved?
- When a commercial property is/has been built, extended, bought, or refurbished.
- If a commercial property is being bought or sold, it is crucial we are involved to ensure the correct provisions are inserted to secure the client’s wishes and protect advisors.
17 December 2021
Reduce Tax Liabilities for 2022The deadline is to complete Self Assessments for 2020/2021 and for amending 2019/2020 Tax Returns is 31st January 2022. We encourage you to explore whether you are in a position to claim any historical PEFFs hidden within your commercial properties. The changes in the CAA2001 legislation means it...
25 November 2021
New Headquarters, New Rebranded WebsiteWe are pleased to announce that we have moved to a new headquarters at Festival Park, Stoke-on-Trent, alongside launching a rebrand and brand-new website. We have seen both growth in the number advisors we support across the UK and within our team which has resulted in the need for larger office space. Our...
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.