What types of property qualify ?
We ’ re responsible for thousands of Capital Allowances claims every year , therefore we have got a good idea just how many different types of property can qualify . Those that are particularly rewarding include :
• Mixed use buildings ( eg apartment blocks with commercial areas )
• Care homes
• Manufacturing facilities with offices ( eg business parks )
• Office blocks
• Hospitality venues ( eg pubs and restaurants )
• Hotels
Any commercial landlords who own the above should investigate as they could be sat on a significant tax mitigation exercise .
How has the pandemic affected businesses ’ ability to claim ?
Capital Allowances are an exercise to mitigate tax so a company needs to be profitable in order to claim . Many companies had a tough few years during the pandemic , and might not yet have the profits in order to benefit .
However , the pandemic also saw rapid growth for many sectors including manufacturing , as well as an unprecedented level of commercial real estate being purchased due to the high volume of bargains there were on the market . Some sectors saw slow periods during the pandemic , however if they have returned to profitability , or expect to soon , they can absolutely look at Capital Allowances as a viable option .
What kind of cases are you regularly working on day to day ?
We are seeing an increase in Capital Allowances claims on furnished holiday lets as the market is extremely buoyant given the staycation boom during the pandemic . Office buildings remain a focus as businesses have had to change how their office spaces work and this may mean moving to new premises , depending on what their workforce requires .
We are also seeing a big uplift in Capital Allowance enquiries into mixeduse buildings where developers are creating hive hubs and villages where buildings accommodate office space , commercial , gyms , cafes and even living accommodation . Whilst the residential elements of these buildings cannot qualify , the communal areas such as gyms , receptions and gymnasiums can , given that they are considered to be “ commercial ”.
What are pitfalls of not getting timely advice ?
Due to legislative changes over the past decade or so there is no question that Capital Allowances are now a time-sensitive matter as well as being a specialist area . Therefore , when a client receives advice from Catax is vitally important . Our service is based on a contingency basis therefore it will cost a client nothing to investigate their position . I have seen examples where clients have missed out on literally tens of thousands of pounds of tax relief by not getting that timely , accurate advice .
What are your top tips for anyone reading this who may be considering their options around Capital Allowances ?
When buying property , it ’ s important you seek specialist advice early . Capital Allowances are still unheard of in some areas , and can mean different things to different people , but certain checks need to be made before you exchange contracts on your purchase to preserve the biggest benefit . In addition , if a client has spent a significant sum of money either building a property or refurbishing a property in the last 12 months they should look into this as a matter of urgency .
@ Catax _ UK @ Catax _ Group
Catax Group
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If no grant or claim is identified , there is no charge .
The process is made simple . All we need is a couple of hours of your time , then our specialists will take care of the rest .
The experts in tax relief and grants services . The team has helped over 15,000 clients receive over £ 445million back into their businesses .
An average of £ 77k back into your business
Contact us on : 0300 303 1903 email : enquiries @ catax . com or visit : www . catax . com