At Lloyd & Co. we are experts in tax relief, and therefore if you are looking to secure the largest Enhanced Capital Allowances tax relief claim possible, we can help you.
Our team of experts are here to guide you throughout the entire process, starting off by explaining Enhanced Capital Allowances to you and ending with you getting the most amount of money possible in your pocket.
Tax law is incredibly complex, but we make claiming as easy as possible for our clients. Our team only requires a few details to start the process and can take care of the entire process, allowing clients to sit back and relax until their benefits are secured.
- Our tax relief experts can help you uncover the largest claim possible
- We only charge clients on successful claims, so our clients really have nothing to lose.
- We have a complete in-house team and do not outsource any of our work.
What is Enhanced Capital Allowances Tax Relief?
Enhanced Capital Allowances tax relief is the practice of allowing taxpayers to get tax relief on capital expenditure by allowing it to be deducted against their annual taxable income. Most assets purchased for use in a business, ranging from equipment and research costs to building renovation costs, are eligible for Capital Allowances tax relief. It’s a means for businesses to get a tax refund for all the goods that are incorporated in their commercial premises.
- Capital Allowances tax relief claims can reduce tax liability and, in some cases, even generate a tax repayment for previous years.
- Enhanced Capital Allowances generally cover the cost of buying plant & machinery and fixtures & fittings when acquiring, constructing, fitting out or refurbishing commercial property.
- You can make claims on historic capital expenditure providing that no claims have been made previously and you still own the assets that you want to claim for. There is no time limit.
Who is Eligible to Claim?
- Do you own or lease a commercial property?
- Are you a UK taxpayer?
- If you answered yes to both questions, it is likely that you are eligible for Capital Allowances tax relief.
You can claim if you own OR rent the building, however only the person who bought the item can claim.
What Type of Buildings Are Eligible?
If you have built, bought, or leased a structure and all construction contracts were signed either before April 6th 2014 or on or after 6th April 2021, you can likely claim Capital Allowances. To be eligible the premises must be used for a qualifying activity, which is taxable in the UK. Qualifying activities include but are not limited to:
- Any trades, professions, and vocations.
- UK or overseas property business (except for residential)
- Furnished holiday lettings (Rules apply).
- Managing the investments of a company.
Just a few examples of commercial properties that could be eligible to claim include:
- Restaurants and Pubs
- Offices
- Warehouses
- Retail Units
- Hotels and B&Bs
- GPs and Dental Practices
- Nurseries & After-school Clubs
- Residential Care, Nursing & Childrens homes
What Types of Expenditure Qualify?
You can claim Capital Allowances for the majority of ‘plant and machinery’ and integral features and fixtures within your business – However it is important to note that you must own the items that you’re claiming for, and not lease them. Here are some of the things that you can claim Capital Allowances tax relief for:
Plant & Machinery –
- Items that you keep to use in your business, including cars
- Costs of demolishing plant and machinery
- Alterations to a building to install additional plant and machinery (not including repairs)
Integral Features –
- Air conditioning and air cooling systems
- Hot and cold water systems
- Lifts, escalators and moving walkways
- Electrical systems, including lighting systems
- External solar shading
Fixtures –
- Bathroom suites
- Fitted kitchens
- Fire alarms and CCTV systems
An easy way to explain the initiative, is if you took the roof off a building, turned it upside down and gave it a good shake, everything left behind is claimable.
Claim Process
Understanding the importance of transparency, we like to ensure that our clients know what’s going on at every step of the claims journey. Therefore, we have created a tailored claim process to follow. Here’s how it looks:
- Client instruction form completed verbally, online or in person.
- Case Manager assigned to client.
- Purchase and accounting information obtained from accountants.
- Initial analysis undertaken, checking land registry details and accounts.
- Full site and property survey conducted.
- Capital Allowances report is written.
- Accountant signs off the report.
- Claim is submitted to HMRC.