Valuation

We use Specialist Plant & Machinery surveyors to provide an unbiased valuation of the qualifying assets within your property. For a multi-occupancy property, this will typically take an hour or so. We need to do this, in order to identify, log and value the Plant & Machinery assets within.

This, along with some further basic information we require, and a due diligence undertaking, to confirm entitlement to claim, is then processed through our system, and generates a HMRC compliant claim report.

The report generated, is of a format commonly accepted by HMRC, and highlights the applied legislation, confirmation of ownership, and scope of the report. The assets identified, are categorised and valued.

We are introducing a new system which will allow our clients to check the progress of their claim with us.

Claiming

Your accountant can submit an adjustment for you for these years, claiming a refund of overpaid tax, due to not claiming Capital Allowances. We recommend that the claim report provided is submitted with the correspondence to HMRC.

If you don’t have an accountant and file your own tax returns we can guide you through the process.
If you pay tax through PAYE, and complete a UK property section in your tax return, then there is a time restriction to 22 months. This means that up to the last 2 years of income tax may be claimed against.
We fully support our claim reports for you for 6 years.

We want to work with your accountant, not against them, and will provide support and advise wherever necessary to achieve this.

YOU CAN START CLAIMING BACK YOUR 2009/10 TAX FROM TODAY! AND YOUR 2010/11 FROM MID APRIL 2011!!

Savings

By using the latest Quantity Surveying techniques, as approved by HMRC, along with the Accounting knowledge required, we can typically identify Plant & Machinery assets within a traditional multi-occupancy if the property was purchased between 29th December 2008 and 22nd October 2010 it will include shared bathrooms, kitchens, lounges, hallways etc, to the equivalent of 20%-25% of the purchase price. This gives you ‘tax deductible allowances against any income stream.

For HMO / Multi-let properties purchase before 29th December 2008 OR after 21st October 2010, then around 7% – 11% of the purchase price qualifies for Capital Allowances tax relief. This is due to the introduction of HMRC Briefing statement 45/10.

Remember that Capital Allowances can be claimed against any taxable income the owners have as well as the profits of your property portfolio.

Plant & Machinery Capital Allowances are effectively treated as an expense of the business. If you have purchased property after 6th April 2008, this whole amount can be offset against taxable income using the AIA (Annual Investment Allowances) legislation. AIA legislation states that up to £50,000 of allowances in 2008/09, and £100,000 for 2009/10 and 2010/11 may be used as a deductible business expense. Any balance over this amount, will be part of the ‘general pool’ of assets, and written down at 20%. Individuals who have other sources of income, and incur PAYE deductions can claim AIA and/or Capital Allowances on the property using ICTA1988 s380. These allowances can be claimed against your overall tax position, and in many cases, wipe out any tax you have paid. A refund will need to be applied for in some circumstances. However, pre 6th April 2008, HMRC will not allow you to use all of this allowance at once. There are rules which govern the rate of usage of the allowance.