Reduction In Tax Liabilities

Reduction In Tax Liabilities

Unclaimed Capital Allowances On Commercial Properties

What are they?
Capital Allowances are a form of government tax relief for commercial property owners under UK law. It is estimated that 9/10 UK commercial property owners are entitled to a large benefit due to unused capital allowances. This  can in some circumstances equate up to 40% of the property value. The reason so many people do not claim their capital allowances is because they are not easy to identify.

This is such a specialised field that a number of large UK accountants outsource this work to specialists. This is where we can help you. We can identify the unused capital allowances within your building such as air conditioning, cabling and heating systems. Below are a few quick questions to establish if you may be eligible to claim capital allowance tax relief. 

Are you eligible?

1.  Are you a UK tax payer?
Yes - Continue to questions 2
No - You will not be eligible to claim for capital allowance tax relief

2.  Do you own a UK commercial property?
Yes - Continue to question 3
No - You are not entitled to claim Capital Allowance Tax relief

3.  Was the value of the property when purchased in excess of £500,000 if you are a lower rate tax payer or in excess of £250,000 if you are a higher earning tax payer?
Yes - Continue to questions 4
No - You may be entitle to capital allowance tax relief however we cannot help you due to the size of the claim

4.  Did you buy the Property Before April 2014 or in the last two financial years?
Yes - Continue to question 5
No - You may have missed the opportunity to claim the capital allowance tax relief however you can contact us to be sure

5. Have the capital allowances for the integral part of the building already been claimed?
Yes - You will not be eligible to claim for capital allowance tax relief as it can only be claimed once per a building
No -  There is a high likely hood you have a claim for capital allowance tax relief, get in touch to find out more
Research and Development Tax Relief
What is it?
R&D is a government scheme that give companies a benefit for taking risks in developing new Systems, Processes, Products, Materials or Devices. Generally if your company is developing something that has never been done before for example developing a specific piece of software or creating a new recipe for your bakery.

R&D entitles you to claim an extra 130% of your expenses on the R&D project (this is for the SME bracket) which can be offset against your corporations tax. In some cases it may lead to a rebate from the government.

Are you eligible?
R&D is quite a complicated area so we cannot give you a definite as to whether you are entitled to a claim without an investigation. however please look at the questions below to get an idea if it is worth pursuing.

1. Is your company a limited company?
Yes - continue to questions 2
No - You will not be eligible to claim for R&D

2. Has or will your company undertake any risks in developing new systems, processes, products, materials or devices?
Yes - Continue to question 3
No - You are most likely not entitled to a benefit however if you want to double check get in contact

3.  Does the development cost come close to or exceed £25,000 totalling for this and the previous financial year. This includes all materials, staff time (wages), outsourcing, equipment etc?
Yes - Continue to questions 4
No - You may still be entitled to an R&D claim, however this does not meet our minimum requirements to process

4. Is your company making profit?
Yes - You may be entitled to the full R&D allowance get in contact for us to do a full investigation your you
No - You may be entitled to a lower level of R&D benefit, get in touch in order for us to investigate further for you
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