Capital allowance tax breaks could net thousands

According to Oliver Rae Associates, owned jointly by David Shortt and Beverley Loggia, these property capital allowances, could represent literally thousands of pounds worth of tax savings.

Upcoming changes to the legislation around these allowances means that commercial property owners will have to ‘use it or lose it’; properties traded after April that haven’t had these allowances identified and ‘pooled’ will no longer be able to be claimed on, losing both buyer and seller potentially thousands of pounds.

David Shortt said: “Accountants will claim capital allowances on most of their clients’ assets as a matter of course. However, the kind of embedded plant and machinery allowances that Oliver Rae Associates concentrates on are so closely tied into the very fabric of the building, that it takes a specialist surveyor to attend the property and physically catalogue and quantify them and ensure that they are fully claimed for. Most small to medium-sized accountancy firms will not have the specialised resources available to them to do this, and will turn to specialists like ourselves to assist them and their clients.”

He added: “Solicitors too are now looking to engage our services. The Law Society has warned them about the responsibility the new legislation places on them, when they act in the sale or purchase of commercial property, and like accountants, the smaller firms are seeking out the assistance of specialist providers such as Oliver Rae Associates to ensure that their obligations are met and their clients are properly taken care of.”

Key features

• Up to 10% of total expenditure on property may be available to the client as a tax relief from HMRC

• Any commercial property will qualify. Certain specific multi-let residential properties may also qualify (enquire for details)

• Claims can be retrospective

• Clear and open process

• No fees payable if less than £10,000 worth of allowances identified

• Full support provided to accountants in completing claim for tax relief