Enhance Your Business Finances with Capital Allowances

Understanding Capital Allowances

What are capital allowances?

In simple terms, capital allowances provide a valuable opportunity for those that spend capital on commercial properties. Allowing them to subtract a portion or the entirety of qualifying expenditure from their profits prior to tax payment. These allowances are determined based on various types of expenditures and can be applied to costs such as:

• Building or renovating a commercial property,
• The acquisition of new or used buildings and structures,
• Investments in plant and machinery.

Capital allowances cover a wide range of items such as, lighting, heating, and health and safety equipment.

Maximise Tax Savings and Business Growth

Opportunities with retrospective claims

By claiming capital allowances, you can save on taxes and reinvest the amount saved back into your business. This infusion of funds can support potential expansion or growth plans, bolstering your business’ finances and overall business prospects.

Furthermore, if you purchased a property, you may be missing out on tax refunds related to purchase expenditure. Retrospective claims can still on many occasions have no time restriction, presenting an opportunity to review your property costs and potentially unlock substantial tax benefits.

For properties acquired after April 2014, there could be a two-year time deadline from completion to claim these allowances. However, it’s important to note that the two-year deadline is not always applicable and depends on various factors associated with the purchase. We strongly encourage you to review all transactions as capital allowances can often be claimed even after two years have passed. It is possible that you are not too late to claim assets that are two years old, potentially entitling you to significant tax reliefs.

Claiming Capital Allowances in the dental industry

Unclaimed Allowances for a Dental Business

In a recent case study, our client purchased a property as a dental practice and sought to claim allowances. We discovered discrepancies in the vendor’s information and worked closely with them to clarify the costs and treatment.

Our research revealed unclaimed allowances due to timing rules, allowing our client to benefit. Through a property survey, we identified qualifying items and applied relevant tax breaks, resulting in significant savings. Our findings were presented to the client and their accountant, ensuring accurate claim submission. A thorough assessment is crucial, even with provided documentation. Our expertise and tailored survey methods led to successful capital allowance claims for the client.