Claiming on embedded fixtures is easy,
if you have the right consultancy.
1. Will this take up much of my time?
Claiming on embedded fixtures is a complex area of tax legislation. Therefore, qualified surveyors and capital allowances specialists like Eureka are needed.
There is very little input required from you! After an initial conversation to see whether you do indeed qualify, you simply need to allow access to your property to a member of our surveying team. We take care of the rest for you and can have the claim complete in as little as 6 weeks in most cases.
2. Will this cost me a lot of money?
We work on a contingency basis with no upfront or hidden costs, we even cover the cost for the surveyor.
Our fees are often paid out of your cash repayment received from HMRC.
In comparison to other competitors, they will charge their fee upfront and charge for the surveyor cost.
3. Would my accountant of claimed this?
There is a general assumption that accountants can make this specialist claim, it’s not true.
Identifying qualifying fixtures that were in or under a property when it was purchased is a surveying exercise, not an accountancy one. Rightly so, if an accountant is given all the receipts for work carried, they can claim. But, if a property was bought with fixtures already in it, there will be no cost information, so no claim.
The claims we prepare require the skills of both tax and surveying specialists.
If can not recall ever seeing a survey, receiving a full capital allowances valuation report or benefit from thousands of pounds in tax relief, its unlikely you have made this claim.
4. Does everyone qualify for this claim?
In short, no.
UK tax legislation does not allow every property to make a claim.
There is a criterion to be met making a capital allowances claim, which is why one of our consultants can quickly see if you qualify before progressing.
5. I bought my property a long time ago, can I still claim?
Yes, you can! Straightforward capital allowances purchase claims are typically on properties purchased before April 2014. There are still opportunities and claims that can be made after that date, however.
6. Why haven't I heard of this before?
You can be forgiven, HMRC suggested a few years back that 80% of commercial property owners have not claimed on fixtures in their property.
7. What if I have sold my property?
There is a two-year window to make the claim after disposal of your property, if you miss this window, you may miss out on your entitlement.
8. What if I am about to sell?
Act now! Making the claim before you sell can reduce CGT in some cases. It can also act as a negotiation tool.
9. Does making a purchase claim affect my CGT upon sale?
The simple answer is NO!
It is a common misconception that claiming capital allowances for plant and machinery will reduce the CGT base cost of an asset and hence increase any gain. This is not true and there is specific legislation (TCGA 1992*) that states that claiming plant and machinery allowances does not reduce a taxpayer’s CGT base cost in a capital asset. However, a claim for these allowances may restrict the extent to which any capital losses are allowable upon a subsequent disposal
10. Will this open a can of worms with HMRC?
UK tax legislation allows you to make a claim, it is your right. In the highly unlikely event of an enquiry, which we would deal with, HMRC will only investigate the tax return of the year it was submitted.
11. Is my business too small to make the claim?
Historically, capital allowances claims have only been available to larger expensive properties and chains. Eureka has made making claims accessible for all, so if you own a small property, we can help you.