What is Capital Allowance?
Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure as a tax deduction and are a valuable tax relief. Property Capital Allowances can recover tax paid and reduce taxes for companies and individuals that have spent capital buying/improving commercial property. A Capital Allowance is a taxable benefit against expenditure on Plant and Machinery for the purpose of the trade.
What are Plant and Machinery?
According to HMRC “There is no definition of ‘plant’ in the Act: but, in its ordinary sense, it includes whatever equipment is used by a businessman for carrying on his business. This does not include stock-in-trade which is purchased or makes for a sale, but all goods and chattels, fixed or moveable, live or dead, which is kept for permanent employment in the business.”
What about the embedded fixtures and fittings of your commercial property?
Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure as a tax deduction and are a valuable tax relief.
Property Capital Allowances can recover tax paid and reduce tax liabilities for companies and individuals that have spent capital buying/improving a commercial property. To ensure the maximum level of tax savings can be claimed, we will survey the property to highlight the embedded items that are not visible within the paperwork. As illustrated below.
If you or your clients have spent capital buying or improving a commercial property and have not had a survey to highlight the embedded fixtures and fittings, then you could be eligible to claim.
We could help you to secure tax savings from your commercial property and reduce your taxable income!
We find the most efficient way of assessing whether tax savings can be achieved is through a conversation with accountants.
We are aware of the accounting routines for assessing Capital Allowances and stress that we’re not questioning anyone’s ability, but by applying additional disciplines, our aim is to increase the level of Capital Allowances claimed and add value to their work. A survey 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).
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.