Capital Allowances Service Generates £6m Tax Relief for Clients

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Garbutt + Elliott’s dedicated capital allowances service has helped eight clients to claim tax allowances worth a total of £6m within the first 3 months of launching the in-house service.

Garbutt + Elliott launched the in-house service in May 2016 to help those clients who own commercial property to access thousands of pounds in tax relief.  The service is headed by property services team partner Jeremy Oliver, who recognised that many clients could benefit from access to in-house specialists able to offer the service alongside other advisory work.

Commenting on the successful start to the service, Jeremy said: “As any business or individual which owns commercial property can benefit from a capital allowances claim, we expected this to be a very successful addition to our offering and I am delighted to have seen such a significant amount generated for our clients in a very short space of time.  By offering the service in-house, we are able to ensure that our clients are dealing with someone they trust and who has detailed knowledge of the business in question, which is a definite advantage.”

Capital allowances cannot be claimed on buildings themselves, but can be claimed on internal fixtures such as plumbing, heating and air conditioning, alarms and emergency lighting and – for pubs and restaurants – certain decorations which contribute to ambience.  Despite the significant savings to be made, over half of commercial property owners have not made a capital allowances claim.

Changes in tax legislation in 2014 make it more important than ever that claims are identified when a transfer of a commercial property is being considered as the entitlement to make a claim could be lost with the new rules.

Jeremy continued: “Many commercial property owners do not fully understand the process of making a capital allowances claim, or when it is appropriate to do so.  We would advise owners to speak to us about capital allowances when they are building, extending or refurbishing a commercial property, when purchasing a property directly from the developer, or when buying or selling a second-hand property.

“Even for those who have owned a property portfolio for several years, it is possible to look back at historic purchases and refurbishments, so there is still scope to make major savings. Given the high value claims we have advised on I would encourage any landlords or business owners/occupiers who hold commercial property to contact us for more information as they could be in a position to claim a significant sum of money.”

Capital allowances claims can be made by any commercial property owner, and average claims for hotels, care homes and offices can be as high as 40 per cent of expenditure, or 25 per cent of expenditure for retail and industrial units or furnished holiday lets.

For more information, please contact Jeremy Oliver, or fill out our contact form below: