There were smiles all round at a Bricklehampton based care home recently as the owner had received thousands of pounds in tax refunds, also known as Embedded Capital Allowances.
The care home owner was able to claim these tax refunds on items that are considered part of the property, such as air conditioning, heating systems, boilers, kitchen and toilet fittings, security systems and more. These items were all considered eligible for tax relief, and the owner discovered that they had been overpaying a great deal of tax on these items.
Capital allowance specialists were employed to make a claim for this property owner, which is often the case with these types of tax claims as specialists are required to survey the property to see whether it qualifies for a claim.
Many commercial property owners have not heard of the concept of Embedded Capital Allowances because they often think their accountant will have made a claim for them, however accountants don’t usually specialise in these kind of claims, which is why capital allowance specialists can make a claim on the owner’s behalf.
Allan Mannion, Business Development Director at capital allowance specialists, Headley Meredith Associates, explains:
“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it.
In the case of commercial property, you need a specialised team to determine the qualifying items embedded in the property, an understanding of how to use the complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by Embedded Capital Allowance experts.”
These tax refunds can be found in many other types of commercial properties, including hotels, veterinary and dentist surgeries, restaurants, retail stores, industrial warehouses and more.