Capital Allowance
We identify more
Capital Allowance Specialists
We can reduce your tax liabilities and recover outstanding tax paid against commercial property that you have spent capital buying and/or improving.
Our property team will determine your eligibility to claim and deal with all aspects of the claim from start to finish including any post filing HMRC support.
Underclaimed
Why are capital allowances typically underclaimed?
Accountants typically deal with information they are given, whilst many costs will remain hidden as non-invoiced expenditure such as Property Embedded Fixtures and Fixings (PEFFs) these can often be overlooked.
InnoFund employ a multi-disciplinary approach with a team of surveyors, tax specialists and property lawyers which is head by our Head of Capital Allowances Mak. We utilise a multi-faceted approach to ensure no stone is left unturned, maximsing tax benefits for our clients with full HMRC compliance.
Accountants typically deal with information they are given, whilst many costs will remain hidden as non-invoiced expenditure such as Property Embedded Fixtures and Fixings (PEFFs) these can often be overlooked.
InnoFund employ a multi-disciplinary approach with a team of surveyors, tax specialists and property lawyers which is head by our Head of Capital Allowances Mak. We utilise a multi-faceted approach to ensure no stone is left unturned, maximsing tax benefits for our clients with full HMRC compliance.
Explanation
What is Capital Allowances?
Tax relief allowing businesses and investors who pay tax in the UK, to deduct from their taxable profit, the value of their qualifying expenditure that is capital in nature such equipment and buildings.
Capital expenditure relating to buildings or industrial/ engineering plant are typically where we can add value.
Examples of qualifying expenditure include, mechanical and electrical systems, furniture, IT systems, and in some cases, walls, floors, etc. Key types include:
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Plant & Machinery Allowances (PMA)
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Structures and Buildings Allowances (SBA)
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Research and Development Allowances (RDA)
Autumn 2023
Changes in Legislation
At Autumn Statement 2023, the government announced that full expensing would be made permanent, along with the 50% first-year allowance for special rate assets.
Annual Investment Allowances – £1m permanently since
April 2023.
Freeports (100% FYA + 10% SBAs) operative date between Oct 2021 to Sept 2026.
130% super-deduction is still available for capex between April 2021 and April 2023.
Explanation
Undervalued
InnoFund identified £116,750.00 they were about to give away.
Our services
How we can help
01
Whole development lifecycle CA advice.
02
Unrivalled surveying expertise.
03
Confirm entitlement to claim and reduce risk of HMRC enquiry.
04
Optimise claim with other tax reliefs as well as improve cash flow with retrospective claim.
05
Without detailed cost data, we can price up New construction, Refurbishment works or buying estate.
Testimonials
Service approach and methodology
Claim time scale // 4-6 weeks (depending on how responsive client is to our queries)
Client involvement // 2-5 hours
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Claim filing support
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Claim defence support
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Site survey visit
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Unrivaled multidisciplinary skillset
Explanation
Estimating allowances
New construction
→ 20-50% may qualify Some retail and industrial units may be lower at 15% and 10% respectively
Refurbishment
→ 25-50% may qualify
Fit-out
→ 50-80% may qualify
Property acquisition
→ Up to 30% of acquisition price may qualify
Additional tax relief may also be available through the structures and buildings allowances (SBA) *Above estimated ranges are based on rule of thumb
Case studies
Take a look on our latest case ctudies
National Hotel Branch
Originally claimed £20,000.00 in Capital Allowances on a £1,000,000.00 refurbishment cost through mid-tier
accountancy practice.
↓
InnoFund reviewed their claim and surveyed the building to identify any missed opportunities
↓
InnoFund identified £670,000.00 of expenditure
overlooked
↓
InnoFund increased claim from 2% to 67%
Grain Storage
Engaged a competitor capital allowances specialist who correctly identified the Grain Storage as plant and machinery
↓
InnoFund engaged for a second opinion and was able to widen the scope of the claim to include the structure underneath the grain storage plant
↓
InnoFund Increased claim from £15,000.00 to
£106,000.00
Student Accomodation Provider
Student accommodation refurbishment with TCV of
£29m including £22m in contractors cost
↓
Analysed the bill of quantities and surveyed 356 dwellings with mix use, due to recent changes in capital allowances dwellings were no longer available to claim under
↓
£4.2m identified with tax savings of £749,862.12
Care Home
Client spent £480,000.00 refurbishing a residential site
for new use as a care home
↓
Accountant claimed £30,000.00 originally
↓
InnoFund successfully increased claim from
£30,000.00 to £250,000.00
Testimonials
Service approach and methodology
Claim time scale // 4-6 weeks (depending on how responsive client is to our queries)
Client involvement // 2-5 hours
-
Claim filing support
-
Claim defence support
-
Site survey visit
-
Unrivaled multidisciplinary skillset
Documentetion
What We Need From You
Information required
- Nature of the prospect’s business
- Type of expenditure or claim
- Value of the capex incurred
- Type of property or how it is used
- Date of expenditure
- Any grant, or capital contribution from a third party?
Documents required
General
- Accounts
- Tax computation
- Fixed asset register
Building acquisition expenditure
- Land registry transfer document or sale and purchase agreement
- CPSE
