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Capital Allowances

Capital Allowances. Commercial Property and EU Furnished Holiday Lets. Presenting A Gateway Product NEW LAUNCH. Capital Allowances.

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Capital Allowances

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  1. Capital Allowances Commercial Property and EU Furnished Holiday Lets Presenting A Gateway Product NEW LAUNCH

  2. Capital Allowances Capital Allowance, this is the name given to the tax relief available on all UK commercial, UK FHL’s and EEC FHL properties in relation to items that are classified as being part of the intrinsic fabrication of the building. Experience shows that many commercial property purchases and subsequent developments i.e. refurbishments, conversions & extensions, are conducted without identifying all eligible items of plant & machinery and therefore potential claims for Capital Allowances have been missed. There is no time bar on this exercise, as long as the items are still in use for the purpose of the trade it may be possible to claim tax relief for expenditure dating back to when the property was first acquired.

  3. Pointers Capital Allowances • Capital Allowances • Plant & Machinery • Moveable / Immovable • Installations

  4. Pointers Capital Allowances • Do You Qualify? • Tax Payer / Making A Profit • Affordability – (to pay invoice) • Original Purchase Price - Minimums • Subsequent Expenditure • Location • Lettings – 140 + 70 days (change)

  5. Items to look for

  6. Items to look for

  7. UK Commercial Criteria • Is the Company / Individual that owns the property liable for UK tax? • Was the original purchase price in excess of £400,000? • Does the individual or the company expect to make a profit this year?

  8. UK-Capital Allowances We are gearing claims aimed at the initial purchase price and the associated installations Plant & Machinery strip out Heating Installations Gas Installations Electrical Installations Electrical Appliances Protective Installations Communications Installation Security Installations Hot & Cold Water Installations Disposal Installations Ventilation & Air Con Installations Internal Fittings

  9. FHL-Capital Allowances Following the April 2009 Budget the tax advantages of Furnished Holiday Let (FHL) status have been extended to cover properties within the European Economic Area (EEA). For the first time, owners of European FHL's can claim capital allowances. There is only a limited time period to take advantage of this opportunity so owners must act swiftly. If your FHL is situated in the EEA and is available for commercial letting and you are a UK taxpayer then you are just a few steps away from a potential tax rebate.

  10. FHL-Capital Allowances We are gearing claims aimed at the initial purchase price and the associated installations • Heating Installations • Electrical Installations • Communications Installation • Security Installations • Hot & Cold Water Installations • Disposal Installations • Ventilation & Air Con Installations • Internal Fittings • Furniture • Pool

  11. FHL-Criteria • UK Resident • Property Located in EU • Available for let 140 days • Let for 70 days a year • April 2011: Changes • Available for 210 Days • Let for 105 days a year • Offset against same business income

  12. Documents • Product Brochure • Application Form • Matrix • Slide Show • HMRC Notes • Guidance Notes

  13. Capital AllowanceProcess Check Qualification Present Solution Complete Application (collect survey cheque where applicable) Send to Head Office Research Carried Out Survey Arranged Report Produced along with Invoice Tax Rebate Applied for by Client Accountant

  14. Survey Fees UK Commercial £750.00 to £2,500 plus VAT Payable with report fee Furnished Holiday Lets £450.00 to £650.00 plus VAT Payable on submission of application

  15. CA-Costing Example £650,000 Purchase Price £162,500 Allowances Identified (25%) £34,125 For Limited Company (21%) £81,250 For Higher Rate Tax Payer (50%) £10,968.75+vat = Client Report Fee £995.00+vat = Survey Fee (UK-FHL)

  16. Members Commission £650,000 Original Purchase Price £162,500 Allowances Identified (25% guide) £10,968.75 = Client Report Fee £995.00+vat = Survey Fee (UK-FHL) £2,742.18 = Members Commission (25%) Members receive = 25% of 6.75% fee

  17. Test Cases

  18. Test Cases

  19. Test Cases

  20. Test Cases

  21. Test Cases

  22. Test Cases

  23. Adverts

  24. Processing Cases Send to: Miss Megan Gresty BA Hons 2 Old Market Place Altrincham Cheshire WA14 4NP 0161 928 9961 – 0161 850 1750 info@capitalallowancesandtaxrecovery.com www.capitalallowancesandtaxrecovery.com

  25. Statement Everybody who has commercial premises should investigate the Capital Allowance potential that is an inherent part of that property. Many believe they have already claimed the maximum but we know this is rarely - if ever - true... and it is likely to be thousands of pounds you did not realise you had.

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