New build, refurbishment and extension
Up to 15% of our work is for clients who construct new property or refurbish/extend existing premises. Involving us in the process will help maximise your Capital Allowances claim.
Contractors do not usually provide the necessary details on invoices to enable a client's accountant to identify the costs relating to specific assets qualifying for Capital Allowances.
Details such as 'interim certificate', 'work as agreed' or 'mechanical and electrical as per building specification' are inadequate.
Enhanced capital allowances ('ECA's')
ECA's of 100% are available on energy efficient and environmentally beneficial plant or machinery.
To qualify for ECA's, assets must be new and unused when installed and listed on lists managed by the Carbon Trust (www.eca.gov.uk) and Department of the Environment, Food and Rural Affairs (www.eca-water.gov.uk). The assets on the lists frequently change, therefore, before a valid claim can be made by the taxpayer, certificates should be obtained from the original manufacturer or supplier confirming the assets were new and unused and on one of the lists at the time it was installed. Strictly speaking, HMRC should reject claims for ECA's without this certification.
Structural and buildings allowance ('SBA')
An SBA can be claimed on new build projects commencing on or after 29th October 2018. The amount to be claimed is 2% of the building cost on a straight line basis.
As well as the contractor costs, a proportion of preliminary expenses, builders work in connection and professional expenses can also be added to a Capital Allowances claim. In our experience these costs could be between 15% - 30% of the total project expenditure but because accountants are not quantity surveyors they often miss this valuable addition to the Capital Allowances claim.
Where we help
We can project manage your new build, refurbishment or extension to maximise your Capital Allowances claim. A free consultation is offered prior to our appointment.