Will this affect the value of my property?
No, capital allowances are not taken into account when a property is valued for commercial or accounting purposes .
Will claiming capital allowances increase my capital gains tax liability if I sell the property?
HMRC guidelines are clear that claiming capital allowances will not increase a capital gain. However, care must be taken if selling a property at a loss.
Will this cause a problem with HMRC?
The legislation surrounding capital allowances has been in place since 1949. It is not a tax scheme and as long as the claim is accurate and presented in a format recognised by HMRC then you can expect the claim to be accepted. Our partners deal with all stages of the process, from establishing whether there has been a prior claim, surveying your property, compiling the report to helping you and your tax advisors deal with any queries once the report has been submitted to HMRC.
I am sure we/my accountant have already claimed everything.
Capital Allowances are a specialist area. Unless a detailed survey of the property has been undertaken, specifically for capital allowances then it unlikely that a full claim has been made and you are likely to be missing out on significant tax savings. Capital allowance claims are ideally suited to being dealt with as a stand-alone service. We work alongside your existing advisers and many of our referrals come from professional sources such as accountants, IFA’s and solicitors.
Are you accountants?
No, we are a specialist consultancy firm that work with expert partners in the field of capital allowances. We work in conjunction with our partner firms in order to maximise a capital allowance claim on behalf of our clients.
I bought/built/refurbished my property many years ago, can I still claim?
Yes. There is no time limit for making a claim. As long as you still own the property you can make a claim. However, this is likely to change in the future, you may want to look at making a retrospective claim now, before its too late.
Can I claim for capital allowances on residential property?
It is generally not possible to claim Plant and Machinery allowances for assets within residential property as the relief is intended for commercial premises and not ‘dwelling houses’. There are however, exceptions to this which include; some multi occupation buildings such as care homes, halls of residence, asset in communal parts of blocks of flats, living accommodation at some business premises. This is a complex area, please contact us for further details.
Can i make a claim for a furnished holiday let?
Yes. Following a recent change in UK legislation, tax benefits have been extended to UK owners of Furnished Holiday Lets both in the UK and EEA countries. As long as you and your property meet the criteria set out by HMRC, you may be able to make a claim. Please contact us for further details.
If I sell my property, will I lose all of my capital allowances?
No, only if you fail to seek specialist advice.
It sounds too good to be true
Capital allowances legislation is in place to encourage business. HMRC know they will recover more tax and national insurance from successful businesses than they will give in tax allowances.