Re-Claim Capital Allowances On Commercial Property

What Qualifies As Capital Allowances?

Money spent on buying or improving a property has allowances which can be offset against profits, or against general income for tax purposes. HMRC provides tax relief for expenditure incurred by UK taxpayers on their Capital Investment in commercial and other qualifying types of property.

Most UK businesses pay tax on their trading profits, and Capital Allowances allow them to reduce that tax liability by offsetting capital expenditure against those profits. This can result in either a refund of previously paid tax, mitigation of current taxes due, or a reduction in future tax liabilities, or both.

The Facts

• There is a grey area between “movable” and “immovable” assets which can be claimed for.
• There is no time restriction on when a claim can be made.
• Clams can be made retrospectively.
• Specialist capital allowance claims companies will handle the claim, they work in collaboration with any existing advisers/accountants.
• Allows a company to maximise the tax refund available to the company.
• Typical values for HMRC refunds on Capital Allowances are equivalent to 25% of the property’s purchase price.

How To Qualify?

To claim capital allowances the company must satisfy the following criteria:

• You are a UK taxpayer (either Income Tax or Corporation Tax.)
• You own one or more UK commercial properties (Not in a pension fund.)
• OR you own one or more furnished holiday properties either in the UK or EU.
• The original purchase price was at least £150,000 (£300,000 for furnished holiday lets).
• You or your company are not a registered charity.

What’s The Costs Involved?

Of course there are always costs involved in making any kind of legal claim for a refund. Claims take about 8 weeks to conclude and refunds are give in the form of rebates or offset against the tax bill due.

If you would like to know more about capital allowance claims, please contact us.

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