Claiming Capital Allowances in the UK
We work with your accountant to help you claim capital allowances in connection with your:
Who are Cavetta Consulting Limited
Cavetta Consulting are an RICS regulated firm of chartered surveyors that specialise in valuing Capital Allowances and Land Remediation Relief.
The company was founded in 2015 by Alan Cadden and Lois Stirling to provide a tailored, client focused approach to delivering capital allowances rather that a corporate fee driven ethos.
The directors of Cavetta worked together for nearly 17 years (10 of those with a global property consultancy).
For more information about Cavetta Consulting, what capital allowances are and how they can improve your cash flow download are simple guide.
How Capital Allowances Benefit Your Business
Improve Cash Flow and Yields
The main benefit of claiming capital allowances is that it can improve your cash-flow as a taxpayer. Indeed, in some circumstances, taxpayers may be eligible to receive a payable tax credit from HM Revenue and Customs.
Our bespoke valuation software, along with TouchRight survey software, allows us to ensure that your capital claims are not only compliant with HM Revenue and Customs guidelines but that they are maximised. In addition, ensuring our claims are agreed at least 97% each time.
Using the software and state of the art survey system as of March 2023, we have certified over £141 million of allowances providing over £26 Million of tax relief for our clients.
A taxpayer who actively claims and maximises their statutory capital allowances entitlement, can generate a number of secondary benefits for their business including:
- Allowing further development of the business – with more working capital at their disposal, a taxpayer can make further investments, improve other areas of the business or save the spare cash for more trying times.
- Lowering the risk of investments – by having more cash available to pay lenders, the risk of the investment in the eyes of the lender is lowered, therefore allowing the business to negotiate more favourable terms.
- Improving yields and viability.
Make Development Tax Efficient
The main benefit of planning to make a development tax efficient is to improve your cash flow but this doesn’t always occur. For many years now, HM Revenue and Customs have frequently stated that a significant amount of Capital Allowances and Land Remediation Relief that could have been claimed is, without good reason, not being claimed.
The opportunity to maximise tax savings is often lost because the immediate priority of those driving the development is to complete that project and move on to the next one. In addition, tax relief is often seen as a frightening subject for many developers and professionals, and more often than not, perceived as being the responsibility of “someone else”.
In our experience, 90% of claimants do not plan the tax efficiency of their developments, refurbishments and fit-outs and therefore, miss out on the higher amounts of tax relief. Some are not only missing out on those 100% and 150% reliefs that are available, but in some instances, potential repayments from HM Revenue and Customs.
In addition, by improving cash flow investors can make their development more attractive to potential tenants by having energy efficient buildings which translates to low running costs for tenants.
Preserve and Enhance Value
A proactive approach to claiming Capital Allowances can bring owners of commercial property interests the benefit of preserving and enhancing the value of that property. This is achieved in a number of ways:
- When refurbishing or fitting out property by adopting a tax efficient approach it can boost the sustainability of the asset by affording more energy efficient materials or plant. This is a useful component when considering the life cycle cost of an investment.
- By informing the commercial property market that unclaimed capital allowances may be available, may help to generate demand in the property you are trying to sell; which in turn may enhance or preserve the sale price realised for that property.
- Mitigating the amount of tax that has to be paid allows a property owner the funds to continue to enhance and improve their building.
- In addition, when selling commercial property it is possible to retain all the tax relief generated during your period of ownership.
Our Capital Allowances Services
New Build Projects
We can advise you on the capital allowances process from start to finish. Helping to review cost plans and specifications to ensure qualifying assets are installed through to drafting clauses in lease agreements to ensure the availability of allowances is maximised.
Property Acquisitions
We can guide you through the aquisition process with our due diligence service, to help you obtain your maximum entitlement to capital allowances on assets acquired for your business use or as investments.
Property Refurbishments
We can advise you on the nuances in claiming capital allowances on the refurbishment of your properties including the impact of incidental works, replacement of integral features or revenue deductions for repairs.
Commercial Property Letting
We can assist you with your commercial property transactions by providing services relating to due diligence, entitlement reviews and the preparation of capital allowances valuations.
Contamination and Dereliction
We can assist you assess your expenditure incurred on remediating development or derelict sites to maximise your tax savings through Land Remediation Relief or Derelict Land Relief.
Portfolio Reviews
We offer a free review of your property portfolio expenditure to ensure that your capital allowances are maximised.
Why Should I Choose Cavetta Consulting
We are one of the few Independent Capital Allowances Specialists in Scotland
Cavetta Consulting have offices based in Glasgow and Edinburgh. However, we undertake projects throughout the UK, Ireland and beyond.
Yet, living and working in Scotland allows us to service Scottish based clients in a number of ways:
- We are local and therefore able to meet with you personally on a timely basis;
- We are able to respond quickly to survey requests in even the most remote parts of Scotland;
- We do not incur the additional costs that a London based consultancy would, such as travel and accommodation;
- You will have access to dual qualified professionals with collectively nearly 40 years of experience in maximising taxation allowances.
We Get Great Results
Capital allowances can be claimed for the fixtures and fittings, integral within a property when it is purchased. This tax relief is available at either 6%, 18% or 100% depending on the type of fixture.
We assist accountants who may not have specialist knowledge in valuing the land and building costs to ascertain the tax relief in a number of ways:
- To split out of assets that cannot be identified from the purchase contract.
- To measure the building and site area.
- To value the land and estimate the replacement cost of the building to be undertaken.
- Carry out a site survey to identify and correctly value the items of qualifying plant and machinery.
We Look at the Individual Circumstances of your Client
We do not charge standard rates for capital allowances work. Rather, we ask about the taxpayer’s circumstances at the proposal stage and illustrate the benefit of using our services via a cumulative cash flow illustration.
Our fee will never be more that your first-year tax saving from the achieved capital allowances.
We Don’t Take a Commission Where We Can’t Add Value
Before undertaking a commission, we carryout an evaluation to determine firstly, if we feel that you need specialist advice or whether we feel that the expenditure can be picked up by your accountant and secondly, whether by using us, we will add value to your business in real terms. If we do not feel that we can add value, we do not accept the commission.
On Going Support
Our philosophy is that by continually talking with our Clients, we can identify opportunities that will allow them to maximise their tax saving opportunities, which will in turn provide a cash-flow benefit allowing them to improve, enhance and develop their commercial property or wider business.
We Don’t End Our Commission Until the Capital Allowances are Agreed
We do not charge all of our fee at once. Moreover, we will charge a proportion of our fee on providing you with the capital allowances for your tax return and the remainder once the capital allowances statement claim has been agreed with HM Revenue and Customs.
We Do Not Overstate Claims or Advocate a Risky Approach
Whilst, we provide a low risk capital allowances claim preparation service, this does not translate to a low value claim submission.
We always keep our clients informed of any potential ‘grey’ areas that are identified during our assessment.
What Our Clients Say About Us
Oceania Rentals Limited
“Alan came in and measured up the building and produced the report which we duly submitted to the accountants who was very impressed with the detail. This has allowed us to claim back our capital allowances while myself and our accountants are satisfied they have been calculated correctly.”
P Brady Esq, Director, Oceania Rentals Limited
Studio Golf Ayrshire
“I have known Alan since opening my business in 2015 and I was immediately struck by his enthusiasm, knowledge of his business and a determination for it to succeed. Additionally he is very dependable and offers his clients an excellent customer service.”
D Rushbury Esq, Proprietor of Studio Golf Ayrshire & PGA Professional
Holiday Home Owner
“Thank you Alan Cadden for conducting a capital allowances survey for me after 2 other companies wouldn’t #smallfry.”
E Sinclair
