Capital Allowances
Any business operating in the UK that invests in, or makes improvements to commercial property can benefit from a capital allowances review and receive corporation or income tax savings. The tax savings are usually secured as a reduction in income tax, capital gains tax, or corporation tax.
For freeholders, the additional capital allowances our chartered surveyors and capital allowances experts can identify are usually derived from the property purchase agreement, development and/or improvement costs. For leaseholders, additional embedded capital allowances are usually identified by analyzing any refurbishment costs in greater detail. These frequently include items such as electricals, flooring, partition walls, air conditioning units and embedded features which qualify for capital allowances.
CPRA Group acts for individual leasehold occupiers through to multi-asset landlords and investors. Our aim as experienced capital allowances specialists and tax advisors is to liaise with our clients and their accountants to find out what has already been claimed in previous years and then to uncover additional embedded capital allowances which otherwise would have been lost. These additional allowances can then be claimed within the current tax period or spread across future years
We have a 100% success rate of capital allowances claims submitted to the Valuation Office Agency and HMRC and typically we find that around 70% of our client properties have embedded capital allowances of which they are unaware. This is particularly important for freeholders or occupiers that have developed, fitted-out or refurbished commercial premises in the past few years. A typical claim will involve tens or hundreds of thousands of pounds in capital allowances savings per property.
Our capital allowances reviews are carried out by experienced, dually qualified chartered surveyors and tax advisors who also offer further tax advice and tax planning services. Our capital allowances audit service begins with an initial desktop analysis and a survey of the property to establish the potential of a capital allowances claim. If we proceed our fees are usually a percentage of the total tax saving and there are no upfront administration costs.
If you would like to know if your business could benefit from a capital allowances review, please call our capital allowances team on 020 7770 8000 orby clicking Contact Us.
