Secure more Capital Allowances to maximise Tax Relief

Example: John Fowler Case Study

Purchase Cost: £29,000,000
Claim Achieved: £6,700,000

This is not unusual or an exaggerated example.

Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure – also known as Plant & Machinery – as a tax deduction and are a valuable form of relief that can be quite substantial. But there is a problem – most don’t fully understand what constitutes P&M so when they spend money on qualifying items, they don’t realise it and so don’t have the details to pass to the accountant to claim on their behalf.

Whilst Accountants regularly and comprehensively claim Capital Allowances on moveable items, i.e., desks, chairs, computers, kitchen equipment, etc, these claims are supported by invoices provided by their clients. However, the capital allowable items (P&M) that are embedded within the property are usually overlooked as there is often no invoice and can result in claims not being done.

Who can claim the benefit?

The tax benefit is available to the party that incurred the relevant expenditure or purchased the property i.e., an individual, a company, partnership, etc. How is the benefit claimed? The claim is used to generate a tax refund where possible and is used as a tax credit to reduce future tax liabilities.