PROPERTY CAPITAL ALLOWANCES
Do they actually save tax and help you make more money?
So far in 2017 we have identified over £5,148,053 in likely tax savings for our clients!
DO YOU NEED PROPERTY TAX LAW STRATEGIC PLANNING?
Q: Do you and your accountant actually understand how much extra tax you will be paying next year and how much the changes will rise every year until 2020?
Q: Do you know the impact of losing the 10% wear and tear allowances?
Q: Has it been suggested to you that you put your assets into a Limited Company, to help you avoid paying the increased taxes? It really doesn’t work!
We have recently helped a client with a 10 property portfolio, value £3million, understand that putting his assets into a Limited Company could cost him £140,000 in SDT, plus other costs of up to £15,000.
We are Chartered Accountants who help Landlords achieve the most efficient tax structure possible by skillful use of our Property Tax Strategic Planning.
We will help you reduce your tax bill to pay for this investment many times over.
Recently we met two partners and gave them an illustration of their likely tax savings. They both said “It seems too good to be true, and surely we and our accountant have claimed everything we can?"
They had bought two offices from the NHS for £400k and spent £200k to develop into flats. We surveyed the properties and have now helped both partners save between them £67,376 (net) in actual savings against their personal tax. The two business partners still cannot believe that they would have missed these very valuable savings without our help.
HOW MUCH CAN YOU CLAIM?
The amount of Property Capital Allowances claimable is different for every industry. They range from 10-15% for HMO’s with up to 45% for Care Homes and Hotels. The lettings industry can claim for all the ‘assets’ in the communal and non-dwelling areas.
WHO CAN CLAIM?
You must be a UK tax payer and be paying tax. Typically you will receive a rebate against your last 2 years tax, you will offset the Allowances against this year’s tax bill and if there is any excess, carry that forward to mitigate your future tax bills. You will also need your portfolio to be worth at least £350,000 to make it worthwhile.
In April 2014, the law on Property Capital Allowances changed, putting serious responsibility on solicitors and accountants to properly identify the Allowances within the sales contract. They are struggling to get it right for both sellers and buyers as a recent article in Taxation.co.uk confirms.
"There will be wave upon wave of litigation as disappointed tax payers seek retribution from their advisors (solicitors, accountants, surveyors) whom they will hold responsible for their loss of Property Capital Allowance tax relief on the purchase of their commercial purchase”.
When you are either buying or selling a commercial property (includes HMOs) give us a ring for advice. We are here to help.
Knowledge and Experience
Property Capital Allowances should not be considered in isolation and a little knowledge can be a dangerous thing. Your professional Capital Allowance advisor needs to have a detailed understanding of taxes (VAT, stamp duty, income tax, corporation tax, capital gains tax & inheritance tax) coupled with an in depth understanding of the statutory requirements, the ability to conduct detailed property surveys, and the experience to be able to present logical, sustainable and evidenced reports to HMRC.
We are Chartered Accountants with a 10 Year, 100% record of success in submitting claims to HMRC.
Our own research with over
1,000 clients confirms HMRC’s
“Over 90% of commercial property owners have not claimed the Capital Allowances due to them”
ARE YOU ONE OF THEM?
CAN WE HELP YOU?
If you own a portfolio of HMOs, Multi-lets, Student lets, Holiday lets or Commercial Property worth over £350,000 and pay 40% tax or are moving close to paying that band...
WE CAN DEFINITELY HELP.
Send us your property details and we will prepare an illustration of the likely tax savings we can help you and your accountant achieve in 2017.
The law on Property Capital Allowances came into full effect in April 2014. If the Allowances aren’t identified at the point of a sale they will be lost to both parties forever.
Contact us today on 01327 340408
Surely they have been claimed by myself or my accountant against all the invoices I have already paid and claimed for in improving my commercial property?
The answer is NO!
Unless you have had a survey by an experienced Capital Allowance expert (usually 12-15 pages with photographs and the list of everything quantified and claimable) then you have definitely NOT claimed all the Capital Allowances you are entitled to. These allowances have been enshrined in law since 1878 and are available to be claimed by commercial property owners.
Our message is simple: Claim now to start saving tax!
We can help. We are Chartered Accountants and provide a very specialist tax service with a 10 year success record and help many accountants and solicitors with our tax advice and survey reports.
As in all tax law, there are a large number of variables, which is why it can be such a complicated claims process.
The amounts of Capital Allowances available differ for each industry and relate to the purchase price and development costs. They range from 10% - 15% for letting property, up to 40% for hotels and care homes.
Have a look at some of our recent successful claims. Every property is different and every investor’s tax situation is unique and personal.
We are here to help you and your accountant with specialist tax advice to submit your claim to HMRC.
If you do, are you or your solicitor aware of the consequences of not understanding Section 198 of the Finance Bill 2012, and how it could cause you to lose significant tax saving benefits at the point of closing the transaction?
(For example; one of our clients recently lost over £116,000 in Capital Allowances through his solicitor not understanding S198 and its implications at the point of sale).
Give us a ring for some independent and qualified advice.
Call Bill Loryman on 01327 340408