Capital Allowances are underused — let ’ s turn this around
There are numerous ways to get cash back from the Government and even commercial premises can qualify for tax relief .
This tax break — known as Capital Allowances — can be poorly understood and underused . In this , the second in a series of interviews , Catax Regional Development Director Nathan Robinson demystifies this type of claim .
Nathan Robinson Regional Development Director
Who are Catax ?
Catax is the UK ’ s leading expert in specialist tax relief . Since our inception , we have recovered more than £ 445m of tax relief for clients in the areas of Research & Development , Capital Allowances , the Patent Box and the Remediation of Contaminated Land .
We are not accountants , however we support business owners and property investors in these specialist areas which often aren ’ t covered by standard accountancy practices . the subject of Capital Allowances remains heavily uncovered , with many clients still not receiving timely and accurate advice .
Who is eligible ?
Any UK tax-paying entity that owns a commercial building where that building is either the base for its day-to-day operations , or is rented out to a tenant . Tenants can also qualify for Capital Allowances if carrying out large-scale refurbishments or fit-outs if they are financially responsible for the works .
How does it work ?
What are Capital Allowances ?
Capital Allowances are a form of tax relief for commercial property owners who are investing in embedded plant and machinery within their commercial building . Simply put , if you tipped your commercial building upside down and shook it , the plant and machinery that doesn ’ t fall out is embedded , and that is where the tax benefit to the client is .
Capital Allowances have been available since the 1940s , and Catax has been providing clients with advice and support in this area since 2008 . Yet , in our experience ,
A Capital Allowances claim is essentially an apportionment exercise where the level and indeed the value of qualifying plant and machinery within a building is considered for tax relief . Our team will work with the client throughout the process carrying out due diligence , a survey , then producing a final report which goes to their accountant and HMRC . Qualifying costs are offset against Corporation Tax . We can move very quickly in order to submit a claim before a client ’ s tax year-end .
The average client benefit at Catax in terms of Capital Allowances claims is around £ 77,000 .