Frequently Asked Questions1. My accountant already deals with our capital allowances. Isn’t this something they should have done already? Most accountants do provide capital allowances advice. However, we have consistently been able to generate significant extra value by identifying opportunities to increase and accelerate tax savings. This is even where our client was initially sceptical that we would be able add any value beyond their existing adviser. Capital allowances claims are ideally suited to being dealt with on a stand-alone basis separately to other tax matters and we work alongside other advisers without any conflicts of interest or scope overlap issues occurring. 2. My accountant assures me they have already claimed everything We are specialists, we have a different skill-set and more in depth and up-to-date understanding of capital allowances law and practice than most accountants, who deal with the issue less frequently and widely than us. Your accountant will claim on everyday purchases such as curtains, carpets, fire extinguishers and radiator covers but unless a specialist surveyor has analysed the property then you may be missing out on a potentially large capital allowance claim. We are not undermining your accountant. It is not in his remit to perform these retrospective claims. Your accountant is not a property expert. If your accountant hasn’t undertaken a detailed survey of the property it is highly unlikely that all allowances have been claimed. 3. What if this causes problems with HM Revenue & Customs? HM Revenue & Customs are used to dealing with these claims and our specialist advisors will deal with all stages of the process. In the unlikely event of any issues being raised it is part of our service to resolve any queries. 4. Will this affect my capital gains tax or reduce the value of my property? When you come to sell this will in no way affect you capital gains tax liability nor can you be taxed on a tax refund. Capital allowances are a right, not a privilege, and are not taken into account when property is valued for commercial or accounting purposes. 5. I bought my property 10 years ago. Can I still claim? Yes. It is possible to claim capital allowances in any later year’s tax return, as long as the assets are still owned in that later tax year. 6. I don’t have sufficient taxable profits to benefit from capital allowances. Should I bother with them? Yes. In our experience it is always best to identify capital allowances qualifying expenditure promptly. Firstly, you may have other income, or profits elsewhere in a group of companies, that the capital allowances can be set against. And secondly, when you become profitable and have used all your carried forward tax losses, then the capital allowances will be invaluable. Many allowances can also be ‘disclaimed’, which means identifying and agreeing the amount qualifying for tax relief up-front, but choosing to defer claiming the relief until it is actually needed. However, very many times we have seen businesses short-sightedly failing to claim capital allowances because they are loss-making, and then not claiming in later profitable years when they need the relief. 7. It sounds too good to be true. There must be some hidden costs? There are absolutely no hidden costs. Should we fail to identify an additional £50,000 in unclaimed capital allowances then there are no fees whatsoever. In short, there is absolutely no catch, if you benefit then so do we. You have paid this money out why not get some of it back. |
“I would recommend CA Tax to anyone who owns their own premises. It was well worth the exercise and it is amazing how much your own accountant does not know. The subsequent tax refund was very welcome.”
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Company Number 06762322 |
