Capital Allowance Tax Relief | Just Do Property


 

Are you are a property owner and pay tax in the UK?

We can help you get the valuable tax relief you are entitled to.

Finding out how much you can claim won’t cost you a penny, and will only take a few minutes of your time. Just Do Property are delighted to be working with Arthur Kemp from Exact Business Services to help our subscribers claim what’s rightfully their’s!

If you are one of the informed 4 per cent of business owners who have successfully applied for capital allowances, and benefited, then you don’t need to read on…

…But you could be one of the 96 per cent who is entitled to a rebate worth literally thousands of pounds, which is still unclaimed. Finding out is simple. Why not get started right now?

Capital Allowances at a Glance

  • If you own commercial, multi-let* or furnished holiday let** property, you probably qualify
  • Capital allowances are an incentive to invest in socially, economically or environmentally desirable assets
  • They give a tax deduction under rules set out by the government
  • They effectively reduce the purchase price of an asset
  • Claiming them is your right
  • Updated guidelines published in December 2008 mean the scope of potential claims has been broadened

*Multi-let & HMO

If you are the owner of a property with a minimum of two unrelated households sharing a building which has communal areas such as hallways, storage areas and so on, you may qualify to claim capital allowances.

We can typically identify assets within a traditional multi-let or HMO of 7% – 20% of the property purchase price, depending on the date of purchase. Unlike normal rental losses which can only be rolled forward until such time as the property makes a profit, capital allowances are off-set against any income stream.

**Furnished Holiday Lets

To qualify the property must be

  • Within the European Economic Area (includes the UK)
  • Available to let for a minimum of 140 days a year
  • Let on a commercial basis for a minimum of 70 days a year
  • Furnished – which means the tenant is entitled to use the furniture
  • Short-term letting (no more than 31 days to the same person)

The Basics…

  • Claiming capital allowances is a right, and has to be included as part of the tax return process. If you do not claim these allowances you do not get the tax relief!
  • You can currently claim up to £100,000 per year in capital allowances, which may be off set against ANY income stream.
  • Although known and understood to some degree by accountants, it is normally capital allowance specialists who are used to establish the full extent of your claim and ensure you get every penny to which you are entitled.
  • We work with your accountant, applying our expertise, to maximise your tax relief.
  • Once items qualifying for these allowances have been identified, valued and documented, you can reclaim previously paid tax, reduce your current year’s tax liability, or even roll forward the allowances until you need to use them.

 

Got Some Questions?

There is obviously a lot to take in and you are likely to have some questions.

Contact info@justdoproperty.co.uk and put Capital Allowances in the subject line.