Are you aware you may be entitled to substantial Tax Relief through capital allowances?
Are you paying too much tax?
We know from experience many owners and users of commercial property both in the UK and overseas, vastly underestimate the definition of plant for capital allowance purposes.
APS Consulting in association with a leading UK based International Property Services Company is offering to owners and users of commercial property, a service to reduce their tax bill. By using the services of specialist chartered surveyors and qualified tax advisors, securing tax relief of up to 40% of acquisition costs is common. A staggering tax relief of up to 80% of any refurbishment costs may also be secured.
What Are Capital Allowances?
Capital allowances are a tax deduction to allow for the wearing out of plant and machinery over time. Within buildings the tax definition of plant and machinery includes integral items, such as heating and cooling systems, electrical systems, alarm systems, lighting, kitchens, sanitary ware and lift equipment.
Specialist tax advisors and Chartered Surveyors can identify and categorise all the assets that will qualify for capital allowances to reduce the UK tax liability of the owner.
How Much Can be Saved?
The amount available will depend on the property purchased, but it is typical for properties that meet HMRC requirements that 35% of the purchase price will qualify for tax relief.
By using surveyors and tax advisors who specialise in the field of Capital Allowances you could;
1) MAXIMISE YOUR TAX RELIEF
2) RECLAIM OVERPAID TAX
3) RECLAIM A TAX REBATE FROM HMRC
4) REDUCE YOUR CURRENT AND FUTURE BILLS
How Much Will It Cost?
We offer a free of charge initial consultation and review
Fees are directly linked to the value of the tax relief uncovered, by way of a modest commission based on results. Fees are always discussed and agreed in advance so you will always be better off using this specialist service than not. The service includes the identification and valuation of the assets qualifying for capital allowances, a detailed valuation report to be included within you tax returns and negotiation with HMRC to agree the claim (if required).
Who Prepares The Claim?
The capital allowances consultancy teams are multi-disciplinary and offer the three main skill sets that are essential to provide a comprehensive capital allowances consultancy service:
Tax and Accountancy – assessing the extensive case law, ever – changing and complex tax legislation and wider tax issues to establish what qualifies and on what technical entitlement basis.
Quantity Surveying – understanding both construction costs and the building process to accurately asses both the value and quantum of qualifying assets.
Property Valuation – providing accurate and thoroughly researched land values; an essential and often disputed area of the overall capital allowances valuation process.
Will This Affect My Capital Gains?
No, it is a misconception capital allowances increase a capital gains liability. Capital allowances do not interact with capital gains if the property is sold at a profit (it does not reduce the base cost). In the unlikely event the property is sold at a loss, then the allowances reduces the allowable loss, but only to the point of allowances already claimed, essentially this means that you don’t get relief twice, just the allowances already claimed.
Won’t My Accountant Automatically Claim?
Not necessarily. Accountants may be aware of capital allowances on Commercial property and furnished holiday lets, but are unlikely to have the valuation and real estate expertise to maximise the amount of allowances available. We work alongside your accountant and we are often appointed directly by non-specialist tax advisors to undertake this type of work.
Can I Use The Tax Deduction Against My Other Income?
Yes. There are some restrictions to prevent abuse of the allowances, but if the property is let as a business, tax losses generated by capital allowance can usually be used against other property and general income.
How Do I Claim?
For further information, or to arrange a free of charge, no obligation initial review
APS Consulting – 0844 2646 411
UK tax legislation is subject to change and the above information was correct at the time of publication (July 2013). An individual’s tax affairs are personal and as such not everyone can benefit from capital allowances. We will be happy to discuss in more detail if capital allowances are relevant to you. We do not offer general tax advice. Our service is limited to the identification and valuation of capital allowances within properties.