What are Embedded Capital Allowances & am I eligible?
If you have wondered what Embedded Capital Allowances are and whether they can help your business, then you need to say “yes” to the following 4 questions:
- Do you own a freehold or long leasehold commercial property?
- If so, is that property being used for a qualifying trade?
- Can you prove that you have incurred capital expenditure on that property?
- Are you a UK tax payer?
If your answer to these four questions is yes, then you could be entitled to thousands of pounds of refundable tax, as Embedded Capital Allowances are a tax deductible allowance that can be set against business profits.
Click on the video below, or read the full article below:
When do Embedded Capital Allowance apply?
Every commercial premises has some embedded capital allowances, but according to HMRC, some 90% of these are left unprocessed.
Whilst most ‘everyday’ purchases (such as computers, carpets, desks etc) have usually been claimed for by your accountant, more complex and significant items may not have, due to the specialist nature of the work involved. The items include central heating, air conditioning, cabling, security systems and much more.
Commercial premises could be: hotels, offices, care homes, pubs, restaurants, together with retail and industrial premises.
How does an Embedded Capital Allowance claim happen?
The work to prepare a claim requires not only a very detailed understanding of the HMRC guidelines and manuals, but also a team of Surveyors and Solicitors in place to help prepare underlying details.
- My Specialist team will survey your property
- After obtaining all the necessary information, the team will prepare a draft report detailing exactly what level of Embedded Capital Allowances you can claim.
- You and your accountant will review and approve the report.
- Once all parties involved are happy with the report, my team will liaise with your accountant to submit the necessary documents to HMRC.
- Once the report has been processed by HMRC, based upon your current tax position, you will normally receive a substantial refund.
Take Action Now!
So, if you think you are eligible for a claim, have a look at the video above, and contact me through this website, email or phone me on 07774548822 to find out more.