Five things people get wrong about capital allowances

A lot of owners never claim capital allowances on their property because of something they half-heard and assumed was true. Here are the five myths we run into most, and what is actually the case.

Myth one: my accountant would have done it

Not necessarily, and usually not. Identifying and valuing the fixtures built into a building is specialist work, not general year-end accounting, and it sits outside what a normal practice does. Most accountants do not claim it because it is not their trade, not because there is nothing to claim.

Myth two: I have owned it too long

There is generally no time limit on claiming for qualifying expenditure on a property you still own. Owning it for years does not close the door. In fact the longer you have owned it, the more the unclaimed relief may have built up.

Myth three: it is a tax dodge and HMRC will come after me

It is a statutory relief written into law to encourage investment in commercial property. A properly evidenced claim is exactly what the law intended. The risk lies only in badly built claims, not in the relief itself.

Myth four: it is not worth the hassle

The hassle, for you, is small. You send us some documents and answer a few questions. We do the specialist work, and you only pay if there is a claim. For a heavily serviced property the figure can be substantial.

Myth five: I made a loss, so there is no point

Even if you have paid little or no tax recently, identified allowances can reduce your tax in the years ahead. The relief does not expire just because this year was lean.

If any of these have been your reason for not looking, it is worth a conversation. It costs nothing to find out where you stand.