Why InnoFund identifies more Capital Allowances.
InnoFund employs a multidisciplinary approach with a team of surveyors, tax specialists, and property lawyers to ensure no stone is left unturned, maximizing tax benefits for our clients with full HMRC compliance.
We can reduce your tax liabilities and recover outstanding tax paid against commercial property that you have spent capital on buying and/or improving, see our most recent work.
Our property team will determine your eligibility to claim and handle 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.
Why Are Capital Allowances Typically Underclaimed?
Expenditure on property refurbishments or alterations is often poorly documented.
Invoices frequently refer to generic stage payments or high-level contractor services without a detailed breakdown. This lack of itemization makes it difficult for accountants to identify which costs could qualify for capital allowances.
When purchasing a property, only moveable assets (chattels) tend to be included
The rules governing what can and cannot be claimed on property-related assets have become increasingly complex,
Timing is another factor
claims are sometimes overlooked if property purchases or fit-outs were completed several years prior and are no longer top of mind. Without a full review of the property’s history (including prior owners’ claims), accountants may assume capital allowances have already been fully utilised, when in fact unclaimed allowances could still be available.
Unsure of what qualifies for capital allowances or how they work? Read our comprehensive guide.
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.
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.
Team
Compliance Team
Mak Okay-Ikenegbu
Head of Capital Allowances
- Fellow CABE, Fellow CIOB, chartered surveyor and valuer
- PhD Surveying, MSc Architectural Engineering
- 15 years experience in Capital Allowance claims and enquiries
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
Client originally claimed £20,000 in Capital Allowances on a £1,000,000 refurbishment cost (2%) through a mid-tier accountancy practice.
InnoFund reviewed their claim and surveyed the building to identify any missed opportunities.
InnoFund identified £670,000 of qualifying expenditure being left on the table after a room-to-room survey of the asset.
Grain Storage
Client had engaged a third-party capital allowances specialist who correctly identified the Grain Storage under plant and machinery allowances.
InnoFund were referred in by client’s accountant for a second opinion and undertook a survey of the asset which widened the scope of the claim to include the structure underneath the grain storage plant.
InnoFund resubmitted the original claim of £15,000 and the client received a new benefit of £106,000 due to engaging InnoFund.
UKs largest Student Accommodation Provider
The client, which was one of the largest UK Student accommodation providers, engaged InnoFund to analyse their capital allowances for one of their assets in the north of England.
The project was a refurbishment of an existing building into a mixed-use asset compromising of student accommodation and commercial retail fronts with a total construction value of £29,000,000.00, including £22,000,000.00 in contractors costs.
InnoFund surveyed the property but excluded the 356 dwellings due to recent changes in capital allowance legislation that meant dwellings were no longer available to claim under Plant and Machinery Allowances.
InnoFund identified £4.2 million of qualifying expenditure with potential tax savings to the client of £749,862.12.
Care Home (National provider)
Client spent £480,000 transforming a residential site to a care home.
Their incumbent accountant claimed £30,000 originally but had not surveyed the property. After InnoFund’s survey we found a lot of assets such as bannisters and heating units that were not identified.
InnoFund increased the client’s claim from £30,000 to £250,000.
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
