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The Process of Claiming Embedded Capital Allowances

Claiming Embedded Capital Allowances is simple, straightforward and stress-free. Our expert team work hard to ensure that you receive the tax relief you are entitled to in a way that requires very little input from our clients.

Many commercial property owners have the potential to claim Embedded Capital Allowances on their property, however some may be put off by the idea of the claiming process. Claiming is easy and straightforward, because our specialists do the difficult bit for you.

We only need an hour of your time to gather information and talk you through the process, then we do the rest. In order to start your claim, we’ll need to talk to your Accountant and get some information from the past few years and we’ll request a copy of the information land registry holds for the property. Again, this doesn’t take long and only relates to information that is needed for a sucessful claim. Once we have identified whether you have a claim, we’ll send out one of our friendly surveyors to look around your property and identify unclaimed items which qualify for tax relief. Based upon the findings from our surveyor, a specialist Tax Accountant will complete a detailed report for approval by HMRC in order to quantify the level of allowances your property will qualify for.

On average, it takes only 8 weeks from our initial meeting to you receiving your relief from HMRC. This relief often adds up to tens of thousands of pounds, a positive impact on any businesses’ cash flow. If you’re wondering whether this is all worthwhile, take our client David from Arctic Spas. When we first met David, he was sceptical about whether he’d have the time to make a Capital Allowance claim. We were able to identify over £127,000 of allowances in his commercial property!

If you have an hour to spare, get in touch to arrange a meeting with one of our specialists who can begin the straightforward process of identifying your unclaimed tax refunds.

Why Property Owners Miss Out on Allowances

Currently, there are millions of commercial property owners that are sitting on a wealth of unclaimed tax relief due to a variety of (mostly) avoidable reasons. As a commercial property owner, it is important to identify how to claim the Capital Allowances available to you and to employ specialists, such as us, to make a claim for you. Here are the top five reasons why many property owners have missed out on a claim.

Expecting accountants to make a claim

Many commercial property owners are under the impression that their accountant will have made a capital allowance claim for them, however this is unlikely because this is such a specialised area of tax that requires the additional input of both qualified surveyors and tax advisors with a different skill set and detailed knowledge of the up-to-date legislation. Expecting an accountant to specialise in an area they are not experienced in would be similar to expecting a dentist to be able to perform as an orthodontist.

The Finance Bill 2012

Since the introduction of the Finance Bill 2012, many commercial property must ensure that Capital Allowances are identified at the point of sale in order to claim the maximum tax relief they are entitled to. Since the transitional period ended in April 2014, there is a new obligation on the seller and buyer of commercial property to agree the Capital Allowances position in order to make a successful claim. Once our specialist team advise property owners and their solicitors of this, they are able to claim thousands of pounds of tax relief that is theirs by right.

Inaccurate elections being submitted

In the past, CAA 2001 s198 (freehold) and CAA 2001 s199 (leasehold) elections have often been completed with inaccurate information or with historical detail not being taken into account and sent to HMRC. However, we can work with commercial property owners and their solicitors to avoid any legal and commercial consequences as a result of inaccurate elections. We can advise property owners on how to submit accurate elections, taking into account all the relevant details, therefore allowing the owner to receive the maximum tax relief available.

Not believing that this is a genuine tax scheme

One of the most common things we hear commercial property owners state is ‘this is too good to be true’, or, ‘this sounds like a tax loophole’. It is important to be aware that HMRC introduced Capital Allowances as an incentive to encourage investment into commercial property and to kick start the economy. Tens of thousands of Capital Allowance claims are processed by HMRC every year, and we have a 100% approval rating with having claims accepted by HMRC.

Not having enough time to make a claim

Claiming for Embedded Capital Allowances requires minimum input from the commercial property owner, and maximum output from us, the Capital Allowance specialists. We deal with all the hard work, whilst the property owner simply provides the basic details of the property. The process usually takes around 6-10 weeks, during which we send out one of our specialist surveyors and a specialist tax advisor who will create a report to submit to HMRC.

Capital Allowance Claims

Why Embedded Capital Allowances can be Claimed

Many may be aware of how Embedded Capital Allowances can be claimed, but we often get the question of WHY can they be claimed. Property owners ask why these allowances are available, why have they not heard about this concept before and why so many owners are yet to make a claim, amongst other queries.

Starting from the beginning, Capital Allowances were introduced by HMRC as an incentive to encourage investment into commercial property and to kick start the economy. Tens of thousands of Capital Allowance claims are processed by HMRC every year. We always stress to our clients the importance of seeing these allowances as a right, not a privilege. Initially, some may suspect that this is a tax loophole or avoidance scheme, however this is a completely legitimate form of tax relief for commercial property owners who may have been overpaying a great deal of tax on important items within their property, such as air conditioning and specialist lighting, which are fundamental to the running of a commercial property.

Upon hearing of their potential to claim, some property owners wonder why their accountant hasn’t already dealt with any Capital Allowance claims. However, it is unlikely that accountants will have done a claim because a specialist team (such as ours) are required to identify and process claims, as well as a detailed knowledge of the HMRC guidelines and manuals, which is why many property owners are yet to make a claim on their property. We work closely with accountants to prepare the report and ensure that the figures provide the best possible benefits for their clients.

Not only are accountants expected to deal with Capital Allowance claims, solicitors are also often expected to advise their clients on this area of tax. As with accountants, the majority of solicitors do not specialise in this area of tax law, and many have found themselves in a situation where they are being asked to advise on this area of tax that they do not feel fully comfortable with, which can leave the client ill-advised or given advice that can prejudice their rights on this matter going forward. This is another reason why some commercial property owners are unaware of their potential to claim and why we work with solicitors to provide our service and expert advice to their clients to avoid litigation and to help the client receive the money they are entitled to.

If you think you could have a claim on your commercial property, then get in touch with a member of our team today to see if you are eligible to claim Embedded Capital Allowances. As we frequently state, it is your right, not privilege, to claim the tax refunds you are entitled to.

How Embedded Capital Allowances Work

For those of you who have looked through our website and remain in disbelief at the concept of cash refunds for commercial property owners, we can help. For those who simply need assurance that this is not a tax loophole or avoidance scheme, then we can help you too. Once the concept is understood, Capital Allowances is an easy and stress free solution to claiming back tax that has been overpaid by the property owner.

Since we are Capital Allowance specialists, we can explain any question that comes our way in regards to Capital Allowance claims. One common question being, ‘how do Capital Allowances actually work?’ The answer to that would be, quite easily. As long as you fit the criteria of being a UK tax paying commercial property owner, then you could claim thousands of pounds in tax relief.

Claiming Capital Allowances is a simple process that requires minimum input from the commercial property owner, as our highly trained and experienced professionals will take care of all the hard work, identifying which items within the property qualify for a claim. Owners can claim allowances on items that are considered costly to run that are eligible for tax refunds, such as air conditioning, kitchen and toilet fittings, security systems, specialist electrical equipment, heating systems and more. If the property owner has been overpaying a great deal of tax on these items, they will be due Capital Allowances in the form of tax relief.

We have a team of chartered surveyors, chartered tax advisors and quantity surveyors to survey the property, quantify the level of allowances that can be claimed, and submit the report to HMRC in order for the tax refunds to be received. The kind of information gathered includes legal ownership of documentation, details of works and refurbishments, company accounts and details of how the asset is treated, prior owners of the property and more.

Not only is this a simple process, it is also a risk free one since there are no hidden upfront costs, as we only charge a fee once allowances have been identified. What’s more, we have a 100% approval rating with having claims accepted by HMRC.

If you have any questions, get in touch with a member of our team today who will be happy to answer any questions you may have and will guide you through the process of claiming Embedded Capital Allowances.