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Property Capital Allowances


PROPERTY CAPITAL ALLOWANCES

Do they actually save tax and help you make money?

YES!

In 2021 we identified over £18 million in unclaimed Property Capital Allowances for our clients resulting in actual tax savings of over £7 million through successful Property Capital Allowance claims to HMRC.

An introduction to Property Capital Allowances

This short video is for landlords, property owners and investors: it highlights how many commercial property owners can reduce their tax liabilities by claiming Property Capital Allowances on their commercial property.

When a buyer purchases a commercial property, they don’t just acquire the building and the land...they also acquire the properties fixtures. This means that at the point of acquisition, a UK taxpayer may be able to claim Capital Allowances on the value paid for qualifying fixtures. Capital allowances may also be claimed on:

 Certain types of building improvements and/or renovations
 Assets that are used and owned by the business
 Certain types of machinery and specialist equipment that is used for business functions

During 2021 we identified over £18 million in unclaimed Property Capital Allowances for our clients & actually saved our clients over £7 million in tax through successful Property Capital Allowance claims to HMRC.

You and your Accountant may think that you have claimed everything to which you are entitled...the video explains why this may not be the case.

All of the clients we have helped this year, mistakenly thought that they and their Accountant had claimed everything to which they are entitled...are you sure that you are not in the same position?

How Much Can You Claim?

The amount of Property Capital Allowances claimable is different for every industry. They range from 25% for Serviced Apartments with up to 35% for Care Homes and Hotels. The lettings industry can claim for all the ‘assets’ in the communal and non-dwelling areas.

Who Can Claim?

You must be a UK tax payer and be paying tax. Typically you will receive a rebate against your last 2 years tax, you will offset the Allowances against this year’s tax bill and if there is any excess, carry that forward to mitigate your future tax bills.

Q. Surely they have been claimed by myself or my accountant against all the invoices I have already paid and claimed for in improving my commercial property?

The answer is NO!

Unless you have had a survey by an experienced Capital Allowance expert (usually 12-15 pages with photographs and the list of everything quantified and claimable) then you have definitely NOT claimed all the Capital Allowances you are entitled to. These allowances have been enshrined in law since 1878 and are available to be claimed by commercial property owners.

Our message is simple: Claim now to start saving tax!

We can help. We are Chartered Accountants and provide a very specialist tax service with a 14 year success record and help many Accountants and Solicitors with our tax advice and survey reports.

As in all tax law, there are a large number of variables, which is why it can be such a complicated claims process.

The amounts of Capital Allowances available differ for each industry and relate to the purchase price and development costs. They range from 10% - 15% for letting property, up to 35% for hotels and care homes.

Have a look at some of our recent successful claims. Every property is different and every investor’s tax situation is unique and personal.

We are here to help you and your Accountant with specialist tax advice to submit your claim to HMRC.

We offer the following six point guarantee

1) All our work & tax advice on Property Capital Allowances is guaranteed for 6 Years

2) All our work is underwritten by Professional Indemnity Insurance of £1.5 million per claim.

3) There are no up-front fees…and no fees of any kind if there is not a sustainable and provable claim

4) If HMRC reduce the amount of a claim, we refund our fees in proportion to the reduction...so clients are never out of pocket.

5) Christopher Bailey has been specialising in Property Tax Law for 20 years and through his expertise we are able to help clients save serious amounts of tax.

6) All Property Capital Allowance cases referred to us are on a No Results - No fee Basis

Knowledge and Experience

Property Capital Allowances should not be considered in isolation and a little knowledge can be a dangerous thing. Your professional Capital Allowance advisor needs to have a detailed understanding of taxes (VAT, Stamp Duty, Income Tax, Corporation Tax, Capital Gains Tax & Inheritance tax) coupled with an in depth understanding of the statutory requirements, the ability to conduct detailed property surveys, and the experience to be able to present logical, sustainable and evidenced reports to HMRC. We are Chartered Accountants with a 14 Years record of success in submitting claims to HMRC

The new law on Capital Allowances came into full effect in April 2014, through section 187A-B Capital Allowance Act 2001 (brought in by the Finance Act 2012)

With refinements to the Property Capital Allowance rules there has never been a better time to fully utilise the new law to mitigate your tax liability.


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