Why do I need a Property Capital Allowance Specialist?
Capital Allowances on Buildings is an extremely complex area of tax law. We specialise at simplifying the claims process for those with commercial properties.
The Importance of Using Specialists When Claiming Capital Allowances on Buildings.
Why do I need a Property Capital Allowance Specialist?
- Capital Allowance Specialists are uniquely positioned to identify all integral features in a Commercial Property that often do not appear on the balance sheet. Items not appearing on the Balance Sheet often remained unclaimed.
- Our expert consultants often deliver an increased Property Capital Allowance yield of anywhere between 20% and 50%
- Unless measures are in place to identify extensive hidden items, then sadly there is a real possibility this valuable benefit could be lost forever with no way to get it back.
All too often clients tell us that they have claimed Capital Allowances or that they don’t apply to them.
Worryingly, some professional advisors including Chartered Accountants and Solicitors advising on Commercial Property matters sometimes fail to mention Capital Allowances, or indeed, their true scope.
Indeed, the Solicitors Regulation Authority has explained that in failing to mention and advise on Capital Allowances, that they are exposing themselves for potential professional negligence claims in the future.
Most accountants do claim a degree of Capital Allowances that are easily identified on the balance sheet or with recent purchases however, there is often additional benefit waiting to be uncovered by Capital Allowance specialists.
Thankfully as knowledge of this ‘grey area’ of tax law increases, many Chartered Accountants who are proactive and focused on maximising their client’s benefit are happy to recommend that their client talks to the specialist Capital Allowance advisors at Hamilton Wood & Company so that they do not unwittingly lose out on what could be a significant yield; sometimes tens-of-thousands.
The issue can be compounded especially where the expenditures aren’t immediately obvious, and the buildings history is complex.
We need to make clear that it is often simply a point of properly qualifying your position on Capital Allowances.
There is of course a distinction between Capital Allowances which for the most part will be claimed by an accountant, and the position on Commercial Property Capital allowances which are a separate yet overlapping area of expertise.
Most accountants do not have the internal resources to forensically assess a building being used for a commercial purpose.
Indeed, it takes specialist knowledge of all items and assets of interest and the appropriate current value to discern an accurate Capital Allowance claim.
All too often the required paperwork and records required to support a claim can, let’s say, ‘not be ideal’ especially if you’re not sure what paperwork is required in the first place.
This is where the experts at Hamilton Wood and Company can assist.
As part of our Capital Allowance service, we fully manage the claims process from start to finish and advise on all of the required paperwork to put your claim forward in the required way by HMRC, with whom our team will work closely with throughout.
It’s fair to say that our Property Capital Allowance service works a little differently to the services offered by traditional accountancy firms, here’s why:
- One of our Capital Allowance specialists will visit the property making a detailed assessment of all items of interest and fact-checking against a number of databases and different sources of information.
- Our team are recognised as trusted advisors to members of the Institute of Chartered Accountants in England and Wales (ICAEW) as well as the Association of Chartered Certified Accountants (ACCA) and we are more than happy to work alongside your accountants without treading on their toes as we do not get involved with tax year end, VAT or any other areas falling under their jurisdiction. We are simply here to deliver a value-added service for them and your Company.
When it comes to Property Embedded Fixtures and Fittings which is the are of Capital Allowances we are expert in, they fall under the accounting category of Furniture, Fittings and Equipment (FF&E) and this is where the categorisation of allowable items can get a little confusing.
Most items for FF&E include items like computers, printers, desks and chairs etc. and ore often than not, the accountant has already claimed the benefit on these.
Hamilton Wood & Company are only interested in immovable embedded fixtures and fittings that often don’t appear or can’t be identified from the balance sheet alone.
Our team of experts will perform a forensic assessment of any commercial property and we are able to focus on leasehold improvements, or buildings included on freehold land with items being used for the purposes of the trade.
As we appreciate records can be fragmented, it takes experienced professionals to proactively manage a thorough Capital Allowance claim on your behalf so you don’t lose out any additional benefit you could be owed.
The position on leasehold improvements, or buildings included on freehold land can contain significant client benefit and although the task of unravelling the buildings history and qualifying spend can be complex, we are here to simplify the process, so you aren’t bogged down with unnecessary admin and paperwork.
It is important to reaffirm that we work in partnership with accountants in this extremely complex area of tax law.
We find most of the time loose items including an offices furniture will have been claimed however, intrinsic features like piping and cabling are often not claimed and putting an approximate monetary figure on these items reflecting the current value can be a daunting task full of commercial risk if handled incorrectly.
Our Capital Allowance specialists have extensive working knowledge and expertise when it comes to identifying eligible assets and expenditure.
Our team will itemise all items of interest further to a detailed review of the site.
It is this meticulous and forensic approach that often uncovers substantial amounts of expenditure that could otherwise be lost forever.
It is important to mention nothing changes in the building. You still own the assets and they are not damaged as part of our review.
Where some accountants may have claimed some of the Capital Allowances, it is often the tip of the iceberg and as a result, we are happy to provide an expert second opinion, sharing our findings of less apparent items with the accountant.
More often than not, our team is able to safely enhance the clients claimable Capital Allowances by as much as 20-50% compared to historic claims prepared by an accountant not specialised in this complex area.
We believe in transparency as we are here to help both the client and the accountant so future benefit is not lost.
With Hamilton Wood & Company’s Capital Allowance service, your claim is expertly managed and prepared.
We distil and prepare a detailed report for HMRC and should any questions arise, we will handle them as part of your claim for a period of 12m after your claim is finalized.
Our team works diligently to maximise the benefit for you and we try to apply all benefit in a way where there is a payable credit for you so you are in a cash positive position but on very rare occasions it may just be a reduction in your CT liabilities. Either way, we will provide complimentary property illustrations to assess the likely outcome in advance free of charge and without any obligation.
TAKE OUR CAPITAL ALLOWANCE QUIZ TO SEE IF YOU CAN CLAIM
Capital Allowances are an often overlooked and misunderstood benefit that can help improve a company's bottom line.
We help businesses safely identify all hidden items in a commercial property that could contain valuable hidden benefit.
With no exhaustive list of qualifying items, it takes an expert-eye to uncover and identify all eligible items.
We provide access to affordable, low cost, low fee business loans.
Whatever the goals of your business, we are on your side to help you achieve your dreams.
We provide access to the business loans your business needs without leaving you feeling like you are chasing rainbows.
No matter where you are on your business journey, we our business loans can help you.
Hamilton Wood & Company are a leading national provider of R&D tax credit services for SME’s and larger companies in the UK.
R&D tax credits are a government incentive first introduced in 2000 designed to encourage companies to invest in seeking innovation.
Successful R&D tax credit claims can present a substantial cash injection to your business.