It is highly likely that businesses have understated the level of available tax relief and are missing out on cash tax savings in connection with expenditure incurred in acquiring, constructing or refurbishing buildings or property over the last 10 years or more.
Capital Allowances are a valuable form of tax relief available to anyone buying, building or refurbishing a commercial property. They are a tax adjustment only and have no effect upon the profits shown in a company’s financial accounts or on the market value of the property. It is routine for businesses to claim capital allowances for movable fixtures and fittings in a shop, for plant and machinery in a factory or for furniture in an office. They cannot claim such allowances for the immovable fabric of the building, however, which is viewed as a non-depreciating asset.
The opportunity that is often overlooked is the grey area between movable and immovable assets. There are often significant Capital Allowances embedded in and integral to the fabric of the building that go unclaimed. This because Capital Allowances claims, particularly relating to buildings, are a highly specialised subject matter requiring expert knowledge of property design, construction and construction costs, mechanical and electrical installation costs, land values and apportionment and tax matters.
At Balance Accountants we have developed a service working with capital allowances experts to identify those embedded capital allowances and create significant additional tax allowances going back up to 15 years. As the service is provided on a no win, no fee basis, there is nothing to be lost by contacting us. The tax savings can be generated for individuals, partnerships, LLP’s and limited companies who own a commercial property, as long as they are UK taxpayers. Examples include Care Homes, Caravan Parks, Office Blocks, Student Apartment Blocks, Leisure Parks, Cinemas, Day Nurseries, Car Dealerships, Veterinary Practices, Medical Practices, Hotels, Health Centres and Garden Centres.
Contact us here if you would like to learn more about this service and how it may apply to you.
This post was created by Ashley Barrowclough on behalf of the Balance Team.
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