Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure as a tax deduction and are a valuable tax relief.
However, whilst Accountants regularly and comprehensively claim Capital Allowances on moveable items, furniture etc, based on invoices provided by their clients, the capital allowable items embedded within the property are often overlooked, resulting in claims typically less than 50% of entitlement.
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“Recognising the specialist nature of this area of taxation, MSC R&D has developed a full service capability to offer our clients.
This case study relates to a number of industrial units acquired by three separate limited companies controlled by the same individuals.”
THE MSC R&D SOLUTION
MSC R&D’s aim was to secure tax savings against the purchase costs (Land & Buildings only) via Capital Allowances.
The properties were acquired in recent years from UK tax payers and therefore it was crucial we were involved in the legalities before completing in order to satisfy legislation.
We were able to establish an approach that captured qualifying items of property embedded fixtures & features that the previous owner couldn’t claim and the purchaser could.
Being involved before the transaction completed not only secured an approach but also enabled the client to claim first year allowances (Annual Investment Allowance) meaning the full Capital Allowance claim could be used in the year of purchase.
WHAT THE CLIENT SAYS
”Over the last two or three years, my client has acquired the freehold of three new sites. Having seen MSC’s presentation on Capital Allowances Claims, I called Chris and, on his advice, we proceeded with claims on these sites. The process couldn’t have been easier. Chris and his team drove the entire process and within the space of less than a year, and with minimal effort required by myself or the client, we achieved a cash benefit of over £50k.
Financial Director (the FD Centre)
If you have incurred costs to acquire and/or improve commercial property, a review of these costs could generate a refund of tax paid and secure tax savings forming a valuable part of a business’s tax planning.
Contact Chris and his team on 07538 445089 or email: [email protected]
