New changes to Capital Allowances – Financial Bill 2012

The new financial bill of 2012 has arrived and as we expected the Government have made even more changes to Capital Allowances. It is however, better news than we thought! The word on the street was that Capital Allowances were going to be scrapped in April 2012, however after looking into the new financial bill this doesn’t appear to be the case! Great news!

The main change in the new financial bill of 2012 is that the Government are phasing in a mandatory pool of capital allowances which must be completed at the point of sale for all commercial properties. This will come into force April 2014 and basically means that all commercial property owners who are selling a property will need to settle and agree on their capital allowances for the property with the new buyer. This will be a major part of any commercial property sale going forwards.

What does that actually mean for you as a commercial property owner?

You will soon have a legal obligation to record and pool the Capital Allowances on the expenditure of fixtures and fittings of your business. In simple terms, you will need to keep a record of all work done to your commercial property that is claimable under the Capital Allowances Act.
• Currently it is your choice whether or not to claim Capital Allowances, in 2014 you will have to acknowledge that Capital Allowances exist and deal with them when you are selling your property.
• If you are buying a commercial property the seller will have to do a Capital Allowances audit (CAVR) before you purchase the property and decide what to do, depending on previous Capital Allowances claims and any tax relief claimed.
• The phasing in of this new development is being done between now and 2014. After this it will be mandatory to deal with Capital Allowances and you will lose the right to claim Capital Allowances in the future for the building.

Capital Allowances from April 2014 onwards..

• A Capital Allowances Valuation Report (CAVR) must be produced prior to the sale of the commercial property
• Both parties involved in the sale (seller and buyer) have a maximum of 2 years to agree a value of the fixtures and fittings of the property. There are various things that affect how your Capital Allowances are calculated and what this means during the sale of the property. We can explain this over the phone and give you information to suit your circumstances, so call one of our consultants on 0161 968 2051 to discuss what this means for you.
• To complete a Capital Allowances report and be able to sell your property after April 2014 you will need to fill in a SA198 (for freehold) or an SA199 (for leasehold) form which are part of the Commercial Property Standard Enquiry (CPSE) documents required.

We recommend that you speak to a Capital Allowances specialist about your options. Remember it is your legal right to claim tax relief and in some cases tax rebates. Capital Allowances are an asset to your business and were brought out as a stimulus to the economy to help businesses to save money and to grow.

To speak to one of our specialist consultants now call 0161 968 2051 to discuss your options.

Furnished Holiday Lets – FHL Capital Allowances in the UK and Europe

Do you own a Furnished Holiday Let in the UK or the rest of Europe? Did you know that your Furnished Holiday Let has the ability to unlock a a serious tax rebate and relief (if it fits minimum criteria) for the UK tax paying property owner?

How do you know if your FHL qualifies for a Capital Allowances claim?

The minimum criteria:

  • If you bought your property for more than £200k
  • If you are paying tax on the rent-able income of the property
  • The property must be in the EEA (European Economic Area)
  • The property must be let to the public for at least 70 days of the year*
  • The property must be available to let to the public for 140 Days of the year*.

*There is a period of grace on these figures.

If your property fits the above criteria then congratulations as you are very likely to be entitled to a significant tax rebate/relief. It is your right to receive FHL Capital Allowances, based on a legislation called ‘Plant & Machinery Act’ whereby you can claim for the taxable integral features of the intrinsic fabrication of the property.

A recent example of one of our FHL Capital Allowances Claims;

  • Mrs Sheppard – 40% tax payer
  • Bought her property in France for £415k in March 2010
  • Capital Allowances Pool was identified as £166k
  • Capital Allowances claim payable to Mrs Sheppard = £66,400

Mrs Sheppard contacted us via our website callback form, spoke to our consultants and then sat back while we did all the hard work to get her claim processed through the HMRC.

To get your claim kicked off and to receive the cash you are entitled to from the Government call us now on 0161 968 2051 or fill in our callback form. We will provide you with your own personal Net Benefit Analysis, completely free of charge to tell you how much you should be entitled to.

 

Look to your own commercial property to find the extra cash to fund your business, not loans or credit cards.

It is not every day you come to a realisation that you have the right to claim a substantial figure from the Government and that it is your right to receive it. Also, it is not every day you buy commercial property. However, this is what the Government in our current economic climate is promoting; the right to claim tax relief and rebates on commercial property.

This year, you may start to notice the phrases ‘Grants for New Businesses’ and ‘Reducing Start Up Costs’ floating around the ever illuminated industrial atmosphere. The Governments thoughts behind such daring statements, we believe, is that in business ‘you need to speculate to accumulate’ in order to help pull out of the recession. These are exciting and lucrative times to any businessman or businesswoman with the product and knowledge behind them.

Did you realise though, that large sums of accessible cash have been readily available to every single commercial property owner over the last 70 years, and only 10% of all owners who qualify have ever cashed in. If you’re looking to expand your business, before looking towards the possibilities of grants with all their terms and conditions, look to your own property first!

By looking deeper into ‘The Plant & Machinery Act‘, with a certified specialist in this field alone, you may be made aware of tens of thousands of pounds which are already your unclaimed Capital Allowance tax rebate ready to be claimed. If you’re starting a new business and have a new commercial property, it is your right to receive Annual Investment Allowance (AIA), a tax stimulus accelerator. AIA has only been available since 2008 and it is also, in true governmental legislation, a complex topic.

Any company who holds a serious knowledge and reputation in Capital Allowances can provide this knowledge and with an understanding of your return from the HMRC, completely free of charge. We have been working in this area for years and operate a ‘no win, no fee’ policy so there really is only a lot to gain.

For further insight into this area and to find out if you are entitled to claim please contact us today on 0161 968 2051. As for pulling out of a recession, I wish us all the very best of luck.

The only time it is good to be in the higher tax bracket

Obviously earning a high income has always been a good thing; however when you reach the upper tax bracket of income, the 50% tax you have to pay is a bit of a disappointment. If you are a commercial property owner you are entitled to claim back the tax you paid in the previous year as a rebate and tax relief over the future years, even when it is in the higher tax bracket.

Our Capital Allowances Consultants have recently helped a client who is in this higher tax bracket and allowed him to claim back the same tax percentage from his Capital Allowances Pool as the percentage of tax paid in the previous year on the profits of his business.

Dr Raj Patel is a dentist in South London. He purchased his surgery in 1990 for £600,000 and has spent the past 22 years improving his property to make it into the large and successful practice it is today. He is in the fortunate position to be earning a large amount of money, however he has to pay 50% tax because of it.

With the specialist help of CA Tax Solutions in claiming all he is entitled to, this is the only time Dr Patel has been pleased about his tax bracket. CA Tax Solutions have put their knowledge into action and claimed Dr Patel a massive £21,000 tax rebate and future tax relief of £16,000 this year. His total tax savings with rebate and future tax relief will work out to £97,000!

Some commercial property owners claim Capital Allowances through their accountant; however we have found that only 10% are claiming everything they are entitled to. This is because Capital Allowances are so complicated and the laws change all the time. Most accountants only claim for basic second and third fix of your commercial property, whereas with the help of a specialist company like CA TAX Solutions you can also claim for first fix and other elements. Our specialists will work alongside your accountant to ensure you claim your full entitlement.

Call today or fill in our contact form for a quick assessment of your potential savings  - 0161 968 2051

What does Capital Allowances and The Plant And Machinery Act actually cover?

Are you a commercial property owner? If so you are sitting on a potential tax relief of thousands of pounds that you are probably not aware of!

In 2001, Gordon Brown made the ‘Plant and Machinery Act’ more accessible in the form of Capital Allowances for business property owners. This act provides tax relief and in some cases tax rebates for commercial property owners and was brought out as a stimulus for the economy to help businesses prosper. Many of the visitors to this site will have questions such as ‘What is Capital Allowances’ and ‘how do I claim Capital Allowances?’.

Basically, if you picked your building up, turned it upside down and shook it, all of the integral components that fell out would be part of the first and second fix of the building. You can claim for various elements as part of your Capital Allowances including;

  • Central heating, hot water and air conditioning systems
  • Alarms and sprinklers
  • Ventilation systems
  • Electrical equipment and installations eg switchboard, transformer and associated switch gear
  • Standby generator, emergency lighting and power services
  • Lifts and escalators
  • Many, many more elements

All of the above are tax deductable.

Claiming Enhanced Capital Allowances and more specifically The Plant and Machinery Act tax relief is a right, not a privilege for commercial property owners. You are able to claim on this legislation and should ensure that you claim everything you are entitled to. A lot of the time, accountants will only claim for basic third fix of the building, if they claim for Capital Allowances at all. Because Capital Allowances laws change all the time and because it is such a specialist area we can carry out the claim for you. We will work with your accountant to quickly identify all the other elements you can claim for, meaning your tax relief will be substantially more!

Get in touch now to speak to a consultant and get your claim started! 0161 968 2051

Capital Allowances – Surely my Accountant has claimed everything I am entitled to?

When you run a business and own a commercial property you are likely to also have various support including an accountant who looks after your accounts, files your tax return and takes care of all your financial matters. We have found that most accountants are brilliant at their jobs as they have a vast knowledge of general financial laws and needs and are able to combine all of this to keep your business ticking over on an ongoing basis.

When it comes to constantly changing, complicated laws like Capital Allowances however, there seems to be a large number of businesses who are claiming some but not all of the Capital Allowances they are actually entitled to. In our experience only 10% of commercial buildings had been claimed for fully or at all, which means there is a huge amount of unclaimed tax relief out there! This is no fault of the accountant; it is simply because it is such a specialist area.

To highlight our point we sometimes compare an Accountant to a GP Doctor who has a wide range of professional knowledge but who will refer you to a specialist if there is something that needs specialist consultation.

We work with your accountant, not against them

When it comes to your finances and more specifically Capital Allowances we are the specialists. We keep up to date with all the recent law changes and are working on claiming back over £1.5billion for our current clients. We have agreements with several accountancy firms all over the UK to provide specialist Capital Allowances consultation and as part of our claims process we will get our Capital Allowances Report signed off by your accountant. In 99% of the cases the Accountants we have dealt with will not charge you for the time in helping us claim for you.

See the full claims process here and speak to us about your commercial property so we can let you know how much you are entitled to! Call 0161 968 2051 now.

Capital Allowances News from Capital Allowances Claims

Welcome to our Capital Allowances Claims website!

We aim to give you information about the complicated set of laws that are Capital Allowances and help you to claim what you are entitled to from the Government.

Our team have been specialising in Capital Allowances for over 4 years and work exclusively in this area meaning we really know our stuff. At present we are working on claims in excess of £1.5billion for our clients.

Capital Allowances are a great incentive from the Government to stimulate the economy for commercial property owners and help them to grow their businesses. As a commercial property owner you are able to claim back a certain percentage of the Capital Allowances pool identified by our specialists dependent on your business and property circumstances. Capital Allowances will enable you to claim tax relief year on year on a sliding scale. Your yearly tax relief allowance depends on the percentage of tax you pay on the profits of your business.

The Annual Investment Allowance (or AIA) is an accelerated tax relief for any commercial property owner who has purchased their property in the past year to two years (depending) and works out to be around £100,000 until April 2012 and then will drop to £25,000 from April. This means that any property that is purchased after April 2012 will only be entitled to a percentage of £25,000, which will still work out to be a significant amount!

Our advisors will be able to give you a more accurate estimate of your Capital Allowances rebate/tax relief within a few minutes so don’t delay in getting your claim started. Call us now on 0161 968 2051.