So, you own commercial property? Claiming this legitimate tax benefit can save you between 10-25% of the acquisition cost, in tax.Capital Allowances can be the single biggest financial boost to your business in its life. Even so many businesses can easily overlook this lucrative tax benefit.
"My advisors and I thought we had claimed everything
Capital Allowances are one of the most beneficial yet least exploited tax laws in the UK right now.
Capital Allowances are a valuable form of tax relief for those owning, buying, building, or refurbishing commercial property. It’s important to establish early on that this is a tax law set out by ‘The Capital Allowances Act 2001’, and not a loophole in any way.
Essentially, Capital Allowances give tax deductible benefits on ‘plant’ within the building. This is often unseen; heating installations, electrical systems, cold and hot water installation. Everything from a light switch to a lift, and all that’s in between. Your accountant is highly unlikely to uncover any of this type of expenditure for you, since it requires a specialist on-site tax survey. This valuable tax exercise is therefore often easily overlooked.
You are legally entitled to offset the value of these items within your building, against your tax bill, essentially sheltering your profits from taxation. So, in practice, for every £1000 of qualifying expenditure, you can claim £500 if you are a 50% taxpayer, £400 for 40% and so on. It can add up to a tax benefit of up to 25% of the properties original purchase price, that is a significant financial boost to a company, at a time when most companies would certainly welcome capital for further investment. This tax law even applies if you bought the property many years ago.
We help clients to extract as much tax relief from their commercial property as the law allows. iCapitalAllowances work in partnership with arguably the most respected of capital allowances companies in the UK today. Our associates write the book on the subject. Quite literally. This area of tax law is their sole business since 1995. Not only do they have significant credentials in capital allowances and taxation, but also, uncommonly for such firms, in surveying, so the whole process is taken care of in-house. They author one of the most one of the most highly regarded annual guides on the intricacies of every aspect of the system, and notably provide expert opinion for HMRC in contentious cases. This means you are in very safe hands, and with a 100% claim record, we feel we have an unparalleled service to offer.
We would need to qualify your claim with our own due diligence. This would mean establishing your tax status, as a company or individual/partnership and reviewing paperwork such as your purchase contract and replies to enquiries - this will enable us to see if you qualify. With an estimated 1.4m properties still to make a claim, the odds are definitely in your favour, but we can’t take a chance, it’s essential that we qualify the claim early on. We can do this for you at no cost. In fact our service is based on results, which means if there is no claim, there is no fee - Guaranteed.
We would establish an agreeable fee based on results, most potential claims we see have already had a small claim through their accountant, however we go much further by conducting a forensic survey of the commercial property, producing a detailed comprehensive report in a layout which we have been told is easy for HMRC to understand, we then pass the report to your accountant to include the figure on your tax return. Our service helps you extract as much tax relief as the law allows.
Your tax savings are normally based upon a refund of the last 2 years tax you have paid, and an ongoing reduction until your allowance has been used. It is important to add that we will work with your existing advisors throughout this process and we are not looking to replace or offer an alternative for their services.
Get in touch for your risk free, no cost review.
The good news is that the law applies retrospectively and so the benefit is available even if you bought/built the property several years ago. There is no restriction on how far you can go back.
This type of work is outside the remit of most accountants/surveyors and requires specialist input. This is where iCapital Allowances excel. This is a standalone service – we work alongside your existing accountant to compliment their work.