What’s it all about?
When you buy a capital asset e.g. a machine for use in a business, you can’t deduct your expenditure on that asset from your taxable profit to reduce your tax bill. Instead, you may be able to claim capital allowances.
Capital allowances extends to the ‘fixtures’ you acquire with a commercial property. Fixtures include the electrical, heating and ventilation systems, kitchens, sanitaryware, alarm systems etc.
As identifying the value of fixtures acquired with a commercial property requires the skills of surveyors and specialist tax consultants, many claims have been missed. It has been estimated that 8 out of 10 small business and property investors have not made claims for capital allowances on fixtures.
In most instances property owners are entitled to claim capital allowances for the proportion of the purchase price that related to the fixed plant and machinery and integral features they acquired with the property.
Why haven’t I made a claim already?
The tax legislation for claiming capital allowances on fixtures is complex and given that the purchase price does not normally include an apportionment for the value of the embedded fixtures, to be able to make a claim, it requires the skills of professionals in tax and surveying. It is outside the remit of a general accountancy or surveying firm.
Whilst many of the UK’s leading businesses and property investors have benefited from the significant tax savings available, very few independent businesses and individuals have made claims. HJ & R was set up to enable small businesses and private landlords to unlock the tax savings in their properties without having to pay all the tax savings back out in professional fees.
How much tax could I save?
A claim on these fixtures could represent a substantial tax saving and, in most instances, cash repayments of tax from HMRC. We are regularly making claims between 20% and 40% of properties’ purchase prices, sometimes even more, for our clients. Check out our Case Studies page for some examples of some of our success stories.
We are happy to work on a no win no fee basis in most cases and we don’t have any fixed survey costs!
Not every commercial property acquisition will be due the tax relief but our team can carry out all the necessary enquires to determine a property owner’s entitlement to make a claim.
If you would like to find out more information down load our free ‘guide to capital allowances for commercial property claims’ or contact us now to discuss your property.