Capital allowances are available for two main reasons:

Firstly, accounting depreciation is not an allowable deduction for tax purposes. However, capital allowances are available instead, which give a tax deduction under rules set out by Government (this is why capital allowances are sometimes called 'tax depreciation'). Secondly, because capital allowances provide valuable tax breaks, the capital allowances system is used to provide incentives to invest in commercially and economically desirable assets. Capital allowances are a right, not a privilege and are best thought of as a reduction in the purchase price of the assets. They significantly boost the post-tax yield on an investment. In short, capital allowances are an entitlement; if you have incurred the expenditure you deserve the tax benefit.

As highlighted above, the complexity and constantly evolving nature of tax legislation in this sophisticated area and interpretation of HM Revenue and Customs’ rules mean that substantial amounts of allowances go unclaimed. One of the most common misconceptions is that capital allowances need to be claimed when the cost is incurred. This is untrue. It is possible in the majority of situations to claim missed allowances going back several years, often to when a property was originally acquired and for items that were not thought to qualify at the time. In short, there is no time bar on this exercise; as long as the items are still in use for the purpose of the trade it is viable to claim tax relief for expenditure dating back to when the property was first purchased.

Following the April 2009 Budget the tax advantages of Furnished Holiday Let (FHL) status have been extended to cover properites 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, is available for commercial letting and you are a UK taxpayer then you are just a few steps away from a potential tax rebate.

The most common failure in identifying eligible expenditure arises when businesses do not identify items of plant & machinery (P&M) within buildings that they own. Prominent P&M assets that make up the intrinsic fabrication of a commercial building include heating and cooling systems, emergency lighting, security systems & sanitary ware etc. Typically these costs are not segregated from the building cost and are coded to freehold additions with no allowances claimed.

We provide a dedicated professional service that consistently delivers the following benefits:

• Maximum capital allowance tax savings

• Complete confidence that capital allowances are being dealt with effectively

• Maximum efficiency, reducing time and complications to a minimum for our clients and their advisors