A recent client claimed significant tax relief through an Embedded Capital Allowance claim, an under-utilised method of tax relief associated with the Capital Allowance Act 2001.
The Client
A property investor based in the Midlands acquired a two-story restaurant located in Bristol worth just under £1m.
The Result
Our specialists team carries out a review on the acquisition of the building and identified £240,000 of qualifying expenditure, generating over £78,000 of tax savings.
Our Approach
At HMA Tax, we are an experienced, award-winning and global team of experts who regularly complete hundreds of claims each month ensuring that they are handled with care, and processed quickly and efficiently.
Our philosophy and methodology is second to none, and the following approach is one of the reasons HMA Tax are the UK’s market leader in completing successful Embedded Capital Allowance claims.
1) DUE DILIGENCE CHECK
With each claim, we start by verifying whether there had been any prior claims for the fixtures by a previous owner. For this client, we were involved in reviewing the legal documents for the acquisition to make sure our client could claim the full amount of capital allowances.
Based upon this review we estimated that a sizeable amount could be claimed as an initial refund as well as ongoing tax relief for years to come.
2) PROPERTY SURVEY
To apply a granular level of detail to the claim, we then arrange for a member of our Surveying team to visit the property, along side the property manager, to carry out the survey. Our Surveyors have a great deal of experience in identifying Embedded Capital Allowance items within commercial properties.
We identified and valued the fixtures that qualified for tax relief on a room by room basis.
3) TAX SPECIALIST
Once our Surveyor has completed their survey and post action report, our tax specialists assessed and quantified the level of Allowances the property has qualified for.
The property developer then received a detailed report summarising our research, findings and value of the fixtures, the property and the land.
4) HMRC REFUND
We then submitted this report on their behalf to HMRC as an amended corporation tax return. With the help of the clients accountant, we quickly packaged together the claim and generated the significant tax rebate and relief.
6-weeks from consultation to claim
In just 6 weeks, the embedded Capital Allowances were identified, valued and claimed by our client.
All our claims with HMA Tax are risk-free exercises that produced fantastic results for our client. Our 100% success rate of claims accepted by HMRC means that HMA Tax holds a flawless track record for consistently providing our clients with the best possible service.
A usual review takes between six to eight weeks. Once we have the confirmation from you to proceed we will arrange to speak to your Accountant to obtain the necessary information.
To find out how much you could receive, visit our pubs & restaurants page or try out our online calculator to estimate your claim.
