The document provides information about capital allowances for commercial and furnished holiday let properties in the UK and EU. Capital allowances provide tax relief for eligible capital expenditures. The document outlines what expenditures may qualify, how to determine eligibility, and the process for completing an application to claim capital allowances. Survey fees for identifying qualifying expenditures range from £450-£2,500 depending on the type and size of property. Case studies provide examples of capital expenditures identified in past property surveys and potential tax savings calculated from claiming capital allowances.

1. Capital Allowances Commercial Property UK&EU Furnished Holiday Lets Presenting

2. Useful Information CA10050 - Introduction: Where to find the capital allowance legislation The capital allowances legislation is in the Capital Allowances Act 2001 (CAA01). Before that it was mainly in CAA90 apart from the legislation about patents and know-how, which was in ICTA88 Chapter 1 Part XIII.

3. Useful Links http ://www.hmrc.gov.uk/manuals/camanual/index.htm . http://www.hmrc.gov.uk/manuals/camanual/CA21000.htm http://www.hmrc.gov.uk/manuals/camanual/CA26000.htm http://www.hmrc.gov.uk/manuals/camanual/ca22320.htm

4. Capital Allowances Capital Allowance, this is the name given to the tax relief available on all UK commercial, UK FHL’s and EEC FHL properties in relation to items that are classified as being part of the intrinsic fabrication of the building. Experience shows that many commercial property purchases and subsequent developments i.e. refurbishments, conversions & extensions, are conducted without identifying all eligible items of plant & machinery and therefore potential claims for Capital Allowances have been missed. There is no time bar on this exercise, as long as the items are still in use for the purpose of the trade it may be possible to claim tax relief for expenditure dating back to when the property was first acquired.

5. Pointers Capital Allowances Capital Allowances Plant & Machinery Moveable / Immovable Installations

6. Pointers Capital Allowances Do You Qualify? Tax Payer / Making A Profit Affordability – (to pay invoice) Original Purchase Price - Minimums Subsequent Expenditure Location Lettings – 140 + 70 days (change)

7. Items to look for

8. Items to look for

9. UK Commercial Criteria Is the Company / Individual that owns the property liable for UK tax? Was the original purchase price in excess of £150,000? Does the individual or the company expect to make a profit this year?

10. UK-Capital Allowances We are gearing claims aimed at the initial purchase price and the associated installations Plant & Machinery strip out Heating Installations Gas Installations Electrical Installations Electrical Appliances Protective Installations Communications Installation Security Installations Hot & Cold Water Installations Disposal Installations Ventilation & Air Con Installations Internal Fittings

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

12. FHL-Capital Allowances We are gearing claims aimed at the initial purchase price and the associated installations Heating Installations Electrical Installations Communications Installation Security Installations Hot & Cold Water Installations Disposal Installations Ventilation & Air Con Installations Internal Fittings Furniture Pool

13. FHL-Criteria UK Resident Property Located in EU Available for let 140 days Let for 70 days a year April 2011: Changes Available for 210 Days Let for 105 days a year Offset against same business income

14. Documents Product Brochure Application Form Matrix x 4 Slide Show HMRC Notes Guidance Notes Marketing Letter www.caatrl.com

15. Capital Allowance Process Check Qualification Present Solution Complete Application (collect survey cheque where applicable) Send to Head Office Research Carried Out Survey Arranged Report Produced along with Invoice Tax Rebate Applied for by Client Accountant

16. Survey Fees UK Commercial £750.00 to £2,500 plus VAT Payable with report fee Furnished Holiday Lets £450.00 to £650.00 plus VAT Payable on submission of application

17. CA-Costing Example £650,000 Purchase Price £162,500 Allowances Identified (25%) £34,125 For Limited Company (21%) £81,250 For Higher Rate Tax Payer (50%) £8,125.00+vat = Client Report Fee £995.00+vat = Survey Fee ( UK-FHL )

18. Members Commission £650,000 Original Purchase Price £162,500 Allowances Identified ( 25% guide ) £8,125 = Client Report Fee £995.00+vat = Survey Fee ( UK-FHL ) £2,437 = Members Commission (30%) Members receive = 30% of 5% report fee

19. Test Cases

20. Test Cases Plant Amount Disposal Installations £ 4,101 Water Installations £ 6,829 Heating & Air Conditioning Installations £ 29,490 Ventilation Installations £ 3,855 Electrical Installations £ 44,897 Communication Installations £ 14,946 Security Installations £ 1,025 Fixed Internal Fittings £ 17,928 Total £ 123,073

21. Test Cases

22. Test Cases Plant Amount Disposal Installations £ 4,398 Water Installations £ 7,323 Heating & Air Conditioning Installations £ 31,620 Ventilation Installations £ 4,135 Electrical Installations £ 47,610 Protective Installations £ 858 Communication Installations £ 15,392 Fixed Internal Fittings £ 13,702 Total £ 125,037

23. Test Cases

24. Test Cases APPENDIX B ANALYSIS OF QUALIFYING PLANT EXPENDITURE SECTION 23 LIST 'C' CAPITAL ALLOWANCES ACT 2001 APPORTIONMENT OF ACQUISITION COST 2/2a Old Market Place Plant Amount Disposal Installations £1,696 Water Installations £1,752 Gas Installations £1,399 Heating Installations £22,013 Ventillation Installations £2,662 Electrical Installations £23,797 Protective Installations £578 Security Installations £2,152 Internal Fittings £8,207 Total £64,257

25. Adverts

26. Statement Everybody who has commercial premises should investigate the Capital Allowance potential that is an inherent part of that property. Many believe they have already claimed the maximum but we know this is rarely - if ever - true... and it is likely to be thousands of pounds you did not realise you had .

27. Processing Cases Send to: CAATRL 2 Old Market Place Altrincham Cheshire WA14 4NP 0161 928 9961 – 0161 850 1750 [email_address] www.caatrl.com