Butters John Bee are specialist advisors on Capital Allowances in commercial property.
It is well known that a tax deduction can be claimed for Capital Allowances where businesses and individuals purchase moveable plant and machinery (eg. equipment, furniture). What may be surprising is that Capital Allowances can also be claimed in respect of fixed plant and integral features within a commercial property, irrespective of when the property was purchased or constructed.
Fixed plant and integral features include, but are not limited to, the following:
- heating and air conditioning systems
- lifts, escalators and moving walkways
- sanitary and kitchen equipment
- fire alarms and security systems
- sprinkler systems
- cranes and gantries
Any potential claim will be based on the purchase, refurbishment or construction cost of a property and the use to which the property has been put. Examples of specific types of property and the likely percentage of cost that may qualify for Capital Allowances are as follows:
- offices 10-35%
- pubs and restaurants 15-35%
- care homes 20-30%
- retail units 2-10%
We have undertaken exercises on properties costing between £200,000 - £11,000,000 and have secured Capital Allowances for clients of between £30,000 - £4,000,000. Our experience indicates the average claim for Capital Allowances is between 20-25% of the cost of a property.
Our approach is unique: we operate on a no win, no fee basis with no up front costs to pay. Over 80% of our claims involve tax refunds for clients who have nothing to pay until they have received their tax refund from HM Revenue & Customs.
To discuss your specific circumstances and opportunity to claim Capital Allowances in respect of your commercial property, please contact Steve Collis ACA on 01782 211 171.
