Capital Allowances -
Frequently Asked Questions

Isn’t this something my accountant should have done already?

The majority of business owners assume their accountant has already done this although in ninety–nine cases out of a hundred, this exercise has not been done. We are not looking to duplicate any work already done by them we are looking only for additional expenditure.

I have spoken to my accountant who assures me that everything has been claimed?

The tax law is very complicated and changes frequently. So much so that most accountants and even some tax inspectors cannot keep fully up to date unless they have made a point of specialising in this area, which costs a lot of time and money. Success in making these claims need the right technical skills and negotiating experience. Capital Allowances have evolved over the years into a sophisticated area that requires complex property valuations and analysis exercises to be fully utilised. Accountants deal with tax computations but, because they are not experts in property, are unable to fully exploit the value of allowances. If your accountant hasn’t undertaken a detailed survey of the property it is highly unlikely that all allowances have been claimed.

Do I have to pay anything up front?

Absolutely not – Cost Care never charge upfront fees.

When will I have to pay?

We would expect payment once your taxation advisor has confirmed that the money identified is eligible to be claimed as capital allowances. If we are not successful then no fees whatsoever will be payable.

How much am I likely to get?

It depends on how much money you have spent and your individual tax circumstances – if you owe HMRC for example you will not receive a refund, although any existing debt would of course be reduced. The largest claim we’ve done so far was for £560,892 which resulted in a monetary benefit of £171,116!!

Will this affect my capital gains tax?

When you come to sell this will in no way affect your capital gains tax liability nor can you be taxed on a tax refund.

I bought my home 20 years ago can I still claim?

There is no time limit on claims – in fact more generous rules apply for pre 1993 assets.

How long will this take?

It depends really on how quickly we get the information we need from your accountant and also yourself. This would typically be 3 to 6 months although the quickest yet was 4 weeks.

How much work will I have to do?

Very little – you will be asked to provide some basic information.

How much work will my accountant have to do?

Again, very little – we ask for some basic information, which can simply can be retrieved from their files to ascertain what has already been claimed.

What if HMRC don’t accept the claim?

We have NEVER had a claim refused by HMRC. However in the unlikely event that this were the case we would not have been successful and no fees whatsoever would be payable.

My accountant has told me that I will get this money back automatically if I sell, so why should I do it now?

If you do not claim back all the capital allowances available to you, and then subsequently you sell the home, the eligibility will pass on to the new owner.

This sounds too good to be true, where’s the catch?

There is absolutely no catch – if you benefit then so do we. You have paid this money out – why not get some of it back?