James Telling, Head of Development and Acquisitions – 30th June 2021

MANCHESTER: An international property consortium are ending the quarter with a pleasant windfall, as they have been able to claim over a million pounds in capital allowances across their diverse commercial property portfolio.

The group, who owned the properties in question and has asked to remain anonymous, was able to make a capital allowance claim based upon the embedded assets held within the building.

These items are considered to be part of the property, and are referred to as plant and machinery items. These typically include items such as elevators, climate control, wiring, plumbing and fit-outs for office buildings.

“We received an email from HMA Tax in early June, and it was quickly uncovered that we were sitting on upwards of £1.4m of allowances, we knew this was something we couldn’t ignore, particularly with our strategic focus of a post-covid recovery”

With Manchester remaining the second largest economic city in the United Kingdom and at the heart of the digital revolution driving today’s economy, it is fast becoming the next destination for property investors outside of London.

Duncan Chittick, Director, explains:

“With all eyes on Manchester, property investors are quick to act. For us, its important that we meet property investors along the way, particularly for property transactions as embedded capital allowances claims still remain one of the most under-utilised tax incentives for commercial property owners”

In the case of capital allowance claims, you will need a specialist to determine the qualifying items embedded in the property, as well as a team with an understanding of the complex tax rulings surrounding the The Capital Allowance Act 2001. All of these skills need to be applied by a capital allowance expert for an efficient, maximised and valid claim.

If you own a commercial property and would like to find out more how your business could improve their tax situation, please call James Telling, Head of Development and Acquisitions on 01384 904090 or email james@hma.tax for more information.