The top 5 questions asked by clients when claiming capital allowances

Capital allowances are a niche area of tax that requires specialist expertise in the accounting, legal and surveying knowledge required to make a saving. Clients are often not aware of the savings available to them due to the complexity of this area. Here are some common questions that we are asked by clients:

Doesn’t my accountant deal with this?

In order to produce a report to submit to HMRC, the property must be surveyed by a RICS chartered surveyor. Accountants will be unable to determine the real value of the assets within the building without invoices and receipts from the time of installation. CPA Tax employs three chartered surveyors with a combined 30 years of experience in capital allowances.

When can I claim the allowances?

You can claim allowances at any point while you own the property, given that it is held as an investment in your accounts. There is no limit on the amount of time between the purchase of a property and the claiming of allowances. On the other hand, you are able to claim allowances as soon as you purchase a property. Claiming allowances in the first year entitles you to the annual investment allowance (AIA), in which you can claim the total tax saving at once.

What can I claim on?

Items considered integral to any commercial property. Essentially, if you shook a building, anything that didn’t fall out would be considered claimable. Some examples include, fire and security systems, heating and cooling systems, electrical wiring, cold water systems, sanitary equipment, and ventilation systems.

What fees do you charge?

Our fees fall between 3-5% of allowances identified or no more than 15% of the tax saving. We offer a bespoke service and therefore determine our fee based on a number of factors including the number of properties being appraised, the value of the properties, the size and scale of properties, and type of client. If the fee is larger than the first year saving, we would then split the fee over two years in order to keep the client in a cash positive scenario. Our fee is not charged until after the client has made a saving with HMRC.

What happens if HMRC rejects my claim?

We undertake a thorough process of due diligence to ensure that a property is fully entitled to claim before a report is submitted to HMRC. However, in the event that a claim is rejected, CPA Tax would carry out any arbitration or disputes that need to be settled at no additional cost to the client. It should be noted that CPA Tax has never had a claim rejected by HMRC.