No! Nein! Non! Why you should not do a Capital Allowance claim.
The Capital Allowances system allows a business to write off the cost of certain capital assets against taxable income. To many people, it is deeply unfamiliar, even though the building blocks of it are under their nose on a day-to-day basis. We have certain feelings about unfamiliar things:
A need to reject?
A desire to move on quickly?
We understand. This article will go through the reasons why you should not do a Capital Allowance claim and why, each time, you might re-consider.
My accountant is thoroughly excellent; they know a Capital Allowance claim when they see one.
We have no doubt they know what they’re doing and they have claimed for countless items of capital expenditure. That said, it takes a specialist set of skills involving both accountant and surveying to uncover and claim for items embedded within the fabric of your commercial property.
I’ve sold the building!
If you have sold in the last 2 years and you did not make arrangements to capture the allowances at that point there may still be a claim. Get in touch! You have nothing to lose.
I’ve sold the property to my pension.
Great, you’ve put it into a tax-free vehicle where lease or lease payments and capital growth are protected. While there is no scope for a Capital Allowance claim here you may have paid Stamp Duty on the transfer in error which could have cost you money upfront and lost growth. Get in touch now to see if you have a claim.
I don’t want a high CGT bill when I sell!
You won’t get one on our account. Making a Capital Allowance claims for items embedded in the building does not affect the cost base for CGT purposes.
I don’t have all the paperwork!
While it would be nice to have a completion statement and a sale contract for every case we do it is not essential. In broad terms we only need your last 2 years of tax returns or company accounts.
I’m far too busy for all of this!
Quite right, you have a business to run. The process is simple and requires little input from you. We do all the running around for you from start to finish.
I’ve heard that your fees will reduce my refund or relief to the extent that this won’t be worth it.
We always leave a client in a cash positive position. If that won’t be the case we will tell you and then equip your accountant to make the claim for you.
Still not convinced? No problem. Get in touch and we will put you in touch with a happy client so you can hear it from someone whose not trying to sell you something!