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Capital Allowances – Frequently Asked Questions

Surely my accountant has claimed this already and if not, why not?

Any claim made by your accountant will often be restricted to items of a moveable nature ‘fixtures & fittings’ on the balance sheet and rarely analyse elements classed within ‘land & buildings’.

Accountants cannot be expected to have the in-depth property knowledge required and as such are not generally equipped to retrospectively value plant and equipment.  Using a specialist capital allowances surveyor we can gather and analyse the appropriate information with the necessary level of detail to satisfy the requirements of the tax assessment regimes laid out by the Inland Revenue.

Will claiming Capital Allowances affect my Capital Gains Tax liability?

It is a common misconception that claiming capital allowances will result in a higher capital gains tax liability when the property comes to be sold.  Property investors avoiding claiming the valuable tax allowances available will consequently lose thousands of pounds by not claiming.

Am I eligible to claim?

If you own or have incurred expenditure on commercial property and are liable to UK tax then you are eligible to claim.

How much can I claim?

This will vary depending on the type of commercial property and the nature of the expenditure incurred.  For an acquisition this typically ranges from 5% – 35% though up to 40% of the purchase price may be available in some cases.  For improvement expenditure this could be considerably more.

How do I claim?

Capital allowances are a valuable tool to reduce your UK income or corporation tax liability which, in the case of retrospective claims, can produce a refund of tax already paid. The allowances are used up over time at the rate dictated by HMRC at any given time. Please contact us or your accountant for current rates.

I bought my property 15 years ago, Can I still claim?

Absolutely, there is no time limit to making a claim.  In fact, undertaking a review of the property purchase and any subsequent improvement expenditure will ensure that you do not miss out on any tax refunds that may be due.

What if HMRC refuse my claim?

We have never had a claim refused, however, if this was the case then of course no fees whatsoever would be payable.  HMRC laid down the legislation in order to encourage as many claimants as possible and our technique is the preferred method of HMRC and the VOA who they refer to on such issues

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

As we work on a contingency basis if there is no claim then we make no charges whatsoever.  Furthermore, if we do not identify £15,000 as an absolute minimum, you will receive our report free of charge.