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Act before March 2014 or lose up to 60% of Capital Allowances forever

By 16th January 2014February 15th, 2022No Comments



Posted by:
Rob Andrew

Did you know that accountants typically only claim 40% of the eligible Capital Allowances on a commercial property?

‘Embedded & Inherent Fixtures & Features’ are a specialist element of the well-known subject of Capital Allowances. A Capital Allowance being a taxable benefit against expenditure on ‘Plant & Machinery’’, for the purpose of the trade.

As a matter of course, accountants identify ’MOVABLE’ items which qualify for Capital Allowances. These include desks, chairs, computers, cars etc. However, accountants in most, if not all, cases are unaware of the qualifying integral Fixtures & Features embedded within the property, that are essential for a business to carry out its trade.

That leaves an enormous wealth of unclaimed, qualifying ‘IMMOVABLE’ items, on which Capital Allowances can be claimed, such as lifts, heating systems, security systems, sanitary systems, kitchens etc. These items were either inherent within the property at the time of acquisition, or have been subsequently installed.

Why are these items missed?
Until the accountant, owner or leaseholder instigates a ROOM BY ROOM SURVEY with appropriate costing of these qualifying items, they will remain unclaimed and a potentially substantial benefit to the client will remain hidden.

Who can claim the benefit?
The tax benefit is available to the party that incurred the relevant expenditure or purchased the property, ie an individual, company, partnership, etc

Why the urgency?
From APRIL 2014 the available Capital Allowances from ‘Embedded & Inherent Fixture & Features’ of a commercial property needs to be administered at the point of the transaction. All historical claims not made this tax year will be lost forever. In simple terms, ‘USE IT OR LOSE IT’;

  • The tax benefit is lost forever on the property
  • The market value of the property could be significantly reduced
  • The advising party risks claims of ‘poor advice’

For free advice about your circumstances and whether a claim may be worthwhile, please contact an Auditel professional consultant, who is paid on results to manage this and many more business overheads.