Because S198 elections are now mandatory this will impact on the service you provide as you will be called upon to be prepared to address capital allowances at point of sale, answering lengthy commercial property enquiries.  If dealt with incorrectly the result could be a complete loss of allowances for current and future taxpayers who acquire that property.

It is therefore, now more than ever, absolutely critical to determine what capital allowances have been claimed on a property prior to any sale or purchase.  You have a duty of care to ensure that the correct measures have been put in place, not least to protect your client’s interest, but also that of your own – our society’s culture of blame leaves advisors severely exposed should they not make certain their clients have access to the specialist knowledge required to put together a comprehensive, robust capital allowances claim.

Cost Care can assist your client in extracting as much tax relief as the law allows.  Accountants refer their clients to us safe in the knowledge that we will execute the scrupulous and at times, arduous but necessary, due diligence that is required to prepare a report that can stand up to scrutiny and succeed in securing the maximum tax relief available.

There are no problems, no catches – this is just good business.

The Process

  1. Contact the Business Development Dept at team@costcare.co.uk or by telephone on 0161 904 0044 with client contact details, type of commercial property & approximate expenditure
  2. A member of our Business Development Team will contact the client in order to explain the joint working relationship with the introducer, establish the qualification of the claim and Cost Care’s contract terms and deliver the contract to the client.
  3. For  your information here are some guidance notes for minimum  purchase expenditure requirements;  Care/Hospitality sectors -£150k, Nurseries/Daycare -£180K, Pubs/Restaurants(without accommodation)-£200k, Holiday lets/Caravan Parks £200K.
  4. Retail/offices-£250K, Warehouses, Car showrooms/Petrol stations forecourts/Factories- £300K.
  5. On receipt of the completed Agreement a dedicated Account Manager will be assigned to the case and an initial assessment will be conducted by our administration department.  Should any further information be required at this stage then this would be requested from the appropriate source.
  6. We will request the necessary documentation to research the taxation history of the property in order to comply with Section 185 CAA 2001.  Any prior claims which will be excluded from the claim.
  7. On receipt of accountant’s evidence the case will be passed to our technical team for them to scrutinise all the documentary evidence and make a full assessment to ensure that there is qualifying activity and expenditure and to ensure there is nothing which precludes a claim to capital allowances.
  8. We will then instruct one of our in-house capital allowance surveyors to carry out a full site survey of the land, buildings and plant and machinery which are then valued using approved HM Revenue methods to identify all claimable items.  This is a comprehensive audit which will typically last two to three hours dependent on the size of the site.
  9. This site survey, together with the supporting documentation enables our technical team to prepare a comprehensive robust report which outlines the entitlement and quantifies the level of claim.  This will then be forwarded to yourselves for onward submission to HM Revenue should you choose this method.  Our team are familiar with the relevant case law and the approach adopted by the Revenue so in the unlikely event that a query is raised this can be dealt with effectively and would be handled within the terms of the Agreement at no additional cost.
  10. Cost Care will explain to the client that any tax advice resulting from the claim will be the responsibility of the accountant or tax advisor and that Cost Care will be responsible for payment of accountancy fees as pre-agreed between us and the accountant.
  11. The client will be invoiced for our contingency based fee on confirmation of the tax benefit and following payment by the client, the introducer will invoice for their pre-agreed fee.