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Where Taxpayers and Advisers Meet

embedded capital allowances claim

ben_power
Posts: 7
Joined: Tue Feb 27, 2018 8:34 pm

embedded capital allowances claim

Postby ben_power » Thu Nov 22, 2018 11:20 pm

Hi all,

I was wondering if somebody could explain the basics of claiming this tax? I am an IFA and it's not something that I'm familiar with.

Trying to digext the information available online is quite difficult so I hoped some knowledgable people on here could help.

I have client's who own a home but run a b&b/holiday cottage business from this. They have been appraoched by a company claiming they can claim £20k tax back? The property was purchased for approximately £850k in 2009.

Any help about this would be appreacited.

bd6759
Posts: 3072
Joined: Sat Feb 01, 2014 3:26 pm

Re: embedded capital allowances claim

Postby bd6759 » Tue Nov 27, 2018 1:37 am

Without knowing anything about the business, the structure, when it commenced and what rate of tax they pay, nobody can say that they can get £20K back: this is just headline figure to attract attention.

A B&B trade can claim capital allowances on plant and machinery (includes fixtures and fittings) as well as on integral features. Part of the purchase price can be allocated to this and capital allowances can be claimed on that amount. The valuation is a specialised area, even more so given the historical acquisition.

A simple search produced a wealth of results: https://www.google.co.uk/search?q=hmrc+integral+features+capital+allowances

Your best option is to advise your client to speak with a local accountant.


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