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.
- 29 September 2022
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- 27 September 2022
Behind the Scenes with a former HMRC InspectorAs part of our specialist team, we are pleased to introduce you to Mark Doodney. Mark works within our technical team and provides invaluable insights into how HMRC may view our approach with particularly technical or quirky cases. Essentially, Mark is key in ensuring claims are processed in accordance...
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.