Do you own commercial, industrial, or agricultural property which is used in a business? If so, have you undertaken a capital allowances review to see if you are due a tax refund?
What are property capital allowances?
Capital allowances are a form of tax relief on the acquisition of capital assets. When it comes to the purchase, construction, refurbishment or fit out of a property, tax relief is available on certain amounts of qualifying expenditure. For example, tax relief is available on any items of plant and machinery that are fixed or attached to the building. The cost of these items is then offset against your business’ taxable profits to reduce your tax bill – or even generate a tax refund!
Always on hand to give advice, listen to concerns and act as a sounding board to inform decisions.
What are items of plant and machinery?
The following items, which is not an exhaustive list, can qualify for property capital allowances: electrical and lighting systems, cold water systems, heating and air-conditioning systems, lifts, solar panels, carpets, cupboards, shelving, signage, alarms and CCTV, sanitary ware, and electrical or mechanical doors/vents.
In addition, the cost of constructing or refurbishing a property also qualifies for relief. These allowances can help reduce taxable income by accounting for the depreciation of these assets over time. This makes it a beneficial consideration for businesses looking to manage their expenditures efficiently.
Who can claim property capital allowances?
Any business that operates a trade or profession or undertakes the letting of commercial property can make a claim for property capital allowances. It doesn’t matter whether you are an individual, a partnership, or a company; if you are using commercial, industrial or agricultural property as part of a business, you could be eligible for a claim.
WR Partners can help you determine your eligibility for property capital allowances and guide you through the process of making a claim. Our team of experts has extensive knowledge and experience in this area, and we can assist you in maximising your tax relief and minimising any potential errors or disputes with HMRC. This can include:
- Analytical expenditure review of new builds, extensions & refurbishments
- Review of historic purchases
- Advice on s198 fixtures elections
- Completion of commercial property standard enquiries (CPSE) form
FAQ's
I purchased my property several years ago – can I still make a claim?
In short, yes. If the property is still owned and used in the business, it is possible to revisit the original purchase or construction and ascertain how much of the price paid is attributable to eligible items.
Can I claim property capital allowances on leased property?
Yes, you can claim property capital allowances on leased property, provided you have incurred the expenditure on qualifying assets. Both tenants and landlords can make claims, although the specific eligibility criteria may vary. It’s essential to review lease agreements and consult with experts to understand the nuances in these situations.
How long does the property capital allowances claim process take?
The duration of the claim process can vary depending on the complexity of the property and the quality of the available records. Typically, a straightforward claim might take a few weeks, while more complex scenarios involving detailed analysis, especially of historical expenditures, can take several months. WR Partners will work efficiently to ensure the process is as swift and smooth as possible.
Is there a minimum expenditure required to claim property capital allowances?
There is no minimum expenditure requirement to claim property capital allowances. However, the potential tax relief should be significant enough to justify the effort and cost associated with making a claim. Our team at WR Partners can help you determine whether your potential claim is worthwhile based on your specific circumstances.
Get in Touch
We love meeting new, exciting businesses. Get in touch with our team to see how we could enhance and protect your financial position.
Or if you’d prefer to speak to someone directly just give us a call on: 08000 664 664 or email: hello@wrpartners.co.uk.
"*" indicates required fields