This is a guest post from OCG Accountants Capital Allowances Team
Capital Allowances – What are they are?
Capital Allowances are a form of tax relief on capital expenditure incurred. These allowances are used against a person, a partnership, or a limited company’s annual taxable income. With over 25 Years’ experience, we simplify the complex world that is Property Capital Allowances.
What is the process of claiming these capital allowances?
We offer a straightforward 6 step process.
Step 1 – After an initial conversation, we will prepare a customised capital allowance illustration. This will show you the likely amount of capital allowances we could identify, estimated tax savings and estimated fees for your claim.
Step 2 – You will engage with us by signing the Letter of Engagement allowing us to identify Capital Allowances on your behalf.
Step 3 – This will allow us to undertake our due diligence, ensuring you are entitled to a claim. We will collaborate with your accountants, tax advisors and solicitors to ensure this crucial part of the claim is completed quickly and professionally.
Step 4 – Once our due diligence is complete, our surveyor will arrange and visit your property/properties to identify, log and value all assets that will be claimable.
Step 5 – We will compose your capital allowance report detailing our findings from the survey and information gathered from our due diligence process.
Step 6 – We will send you and your accountant the HMRC compliant report we generate for agreement, before amending the relevant return(s) to HMRC. Any tax repayment will be sent back to you after our fees have been settled.
From beginning to end the whole process takes about 8-12 weeks. The re-submission of the relevant tax return will depend on which year the capital allowances can be applied.
Who Can Claim?
- Commercial property freehold owners or long leasehold holders
- Must be paying UK Corporation Tax and/or Personal Tax
- Property must be involved in a Qualifying Activity:
- Trades and Professions
- UK and/or overseas property business
- Furnished Holiday Let(s) in the UK or European Economic Area
Who Cannot Claim?
- Pension Fund property owners
- Charitable organisations who own property
- National and Local Government owned properties
- Non-UK Taxpayers
- Companies trading property as stock
If you would like a no-obligation conversation about your allowances, please call 01642 035208 or email capitalallowances@OCGaccountants.co.uk
Recent Comments