Capital Allowances Claims on Commercial Property in the UK. 80% unclaimed for.

1. Identifying and Unlocking
the hidden tax savings in
business property
Jason Batty

2. About Eureka
Capital Allowances
• Tax efficiency is our business, our team have over 20 years experience
between them in capital allowances.
• Located in South Wales.
• Over the years we’ve helped over 2000 commercial property owners, with
unrivalled experience in the hospitality sector.
• We work with accountants, solicitors, SME’s & independent property investors
all over the UK.

3. Unlock Hidden Tax Relief
in Commercial Property
What We
do for our clients

4. Identified every month in capital
allowances tax relief and cash
rebates from HMRC
£4m
The average claim is around
£35,000 per property!

5. Two CAPITAL ALLOWANCES
Opportunities
1. Purchase Claims
2. Cost Claims

6. Capital allowances is a form
of tax relief available on
business properties
A form of
tax relief
You can claim capital
allowances when you buy
assets that you use in your
business deemed as ‘plant
and machinery’
Plant and
Machinery
Land, buildings or
structures are NOT
classed as plant and
machinery
Not land or
buildings
Capital allowances can be
claimed on FIXTURES within a
building
Embedded
Fixtures
What is
Capital Allowances Tax Relief?

7. A fixture is defined as ‘plant and machinery that
is installed or otherwise fixed to a building or
other description of land as to become, in law, part of
that building or other land’​.
Buildings
Embedded Fixtures

8. PURCHASE CLAIMS, the best
kept secret…
you can claim on items already in
your property when it was
purchased!

9. Fixtures include:
Electrics & Lighting
Heating & Ventilation
Kitchens
Bathrooms
Telecommunications
Fire & Security Alarms
Drainage
Etc
Fire alarms
Bathrooms
Swimming pools or
extensions
Carpets
Heating and Ventilation
systems
kitchens
Reception desks / Bars
Security systems
and alarms

10. How much tax
could you save?

11. COMPANY
Purchase price £400,000
The original purchase price for the property
Capital allowances identified
Allowances are generally between 20%-40% of the total purchase price
(includes SDLT and Legal Fees)
£100,000
Tax savings @ 19% (offset against profits)
Tax savings are pooled for future use at 8% / 18%
£19,000
£4,900
Immediate cash rebate
Claim made in earliest open tax return = IMMEDIATE
cash repayments *2 tax years*
Capital Allowances
Example Claim

12. INDIVIDUAL – BASIC RATE
Purchase price £400,000
The original purchase price for the property
Capital allowances identified
Allowances are generally between 20%-40% of the total purchase price
(includes SDLT and Legal Fees)
£100,000
Tax savings @ 29%
Tax savings are pooled for future use at 8% / 18%
£29,000
£5,900
Immediate cash rebate
Claim made in earliest open tax return = IMMEDIATE
cash repayments *2 tax years*
Capital Allowances
Example Claim

13. INDIVIDUAL – HIGHER RATE
Purchase price £400,000
The original purchase price for the property
Capital allowances identified
Allowances are generally between 20%-40% of the total purchase price
(includes SDLT and Legal Fees)
£100,000
Tax savings @ 42%
Tax savings are pooled for future use at 8% / 18%
£42,000
£10,000
Immediate cash rebate
Claim made in earliest open tax return = IMMEDIATE
cash repayments *2 tax years*
Capital Allowances
Example Claim

14. Why haven’t I
heard of this before?

15. 80% of commercial properties have unclaimed
capital allowances for fixtures
80%
*HMRC consultation

16. Why haven’t I
heard of this
before?
Its a specialist area of taxation. Making a claim requires the
skills of surveyors and capital allowances specialists like
Eureka.
SPECIALIST
SMALL INDUSTRY
Only a handful of capital allowances firm.
TOO GOOD TO BE TRUE
There is a lack of trust as many business owners think the
scheme is too good to be true.
Only the highest tax payers and larger properties have
made claims
HISTORICALLY EXPENSIVE

17. ✓Surveyors
✓Cost information
✓Tax knowledge
✓Capital gains tax
Identifying the
value of fixtures
requires
specialist tax
knowledge and
surveying
skills
Why Can’t
My Accountant Claim?

18. Purchased for over
£200,000
Business Property
Owners
Individuals & companies
paid over £1,500 in tax
(must be on rental profits
if FHL)
Previous owners that
have sold within the
last 2 years
To qualify for Purchase
Claim, property must
have been bought
before April 2014
(Unless FHL)
Tax
Payers
Purchases
Sold in
last 2 years
Who can claim?

19. Our process usually
takes between 4 and 8
weeks from the first
instruction to receiving
the tax repayment from
HMRC.
Identify
Opportunity
Team identify
opportunity on
building to unlock
hidden tax savings
Bespoke Proposal
Provide client with
bespoke proposal
outlining their
entitlement, cost,
our credentials and
methodology
Building Survey
One of our
surveyors will visit
the property to
carry out a survey
at no cost. We also
gather Tax Returns
from client or
accountant
Submission to HMRC
Report submitted to
HMRC once reviewed
by client and
accountant
Claim Agreed
HMRC agree the
claim and benefit.
We deal with any
enquiries or
questions relating
to the claim.
Report
Tax team
prepare and
compile
detailed CAVR
report for the
property.
How We do it

20. Sound too good
to be true?

21. ✓ Tax relief on refurbishment costs
regularly underclaimed by
accountants or external advisors
✓ In many cases NO tax relief claimed
at all!
➢ Accountants will claim basic qualifying expenditure
➢ Limited or no cost breakdowns available – One liner
invoice provided by contractor
➢ No profits at the time expenditure incurred
➢ Specialist tax knowledge = higher claims (GP v
Consultant)
➢ Limited awareness of other capital allowances (ECA’s,
CLR, BPRA etc) or industry specific tax reliefs
WHY?
Our knowledge of tax legislation and case law, plus experience of dealing with HMRC enables us to uplift
existing claims or ensure clients obtain maximum tax relief on a project.
Development / Refurbishment
Cost Claims

22. There is nothing to lose as we
do not charge any upfront costs or fixed fees
No Win, No Fee
To date, every claim submitted has been
successful
100% Success
We have a wealth of experience and happy
clients
Happy Clients
There is no impact on capital gains tax when property is
sold in future
No Impact on CGT
Significant tax repayments can be unlocked
for property owners
Tax Repayments
This is not something that your accountant would have
claimed as it requires the skills of tax and surveying
specialists
Specialist Tax Service
Key Points
To Take Away

23. Jason Batty
Managing Director
If you have any questions or would like to find out more about
Eureka and how we could help you or your business save tax,
please get in touch.
07802 657902
jason@eureka-moment.co.uk
www.eureka-moment.co.uk
Our knowledge of tax legislation and case law, plus experience of dealing with HMRC enables us to uplift existing claims or ensure
clients obtain maximum tax relief on a project.
Get in Touch