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Cavetta Consulting’s place is not to work instead of your accountant but to work alongside them where the capital expenditure incurred relates to property matters.
Cavetta Consulting can help to overcome these problems. We give you accountant access to knowledge and experience in these areas. We will also produce a document that will meet the requirements set out by HMRC and give this to your accountant for submission with your tax return.
We only get involved where we can add value. Where the expenditure involves a simple analysis of invoices we would expect that your accountant would not require expert advice.
Cavetta can help in the following cases:
Purchase of commercial property
Capital allowances can be claimed for the fixtures and fittings contained within a property when it is purchased. Tac relief is available at 8%, 18% and 100% depending on the type of fixture.
However, this proves a problem for accountants in a number of ways:
- The split out of assets cannot be identified from the purchase contract.
- To claim tax relief in this instance, HMRC will require a land valuation and estimated replacement cost of the building to be undertaken.
- The building and site area will be required to be measured.
- The exercise will require a site survey to identify and correctly value the items of qualifying plant and machinery.
Construction, refurbishments and fit outs
Claiming capital allowances for these projects can also be problematic for your accountant
Contractors do not always provide their prices which makes valuing the plant and machinery at the 8% to 100% difficult.
There may be incidental costs that need to be identified and claimed.
Professional fees, preliminary costs and other related costs need to be apportioned in accordance with HMRC guidance.
Items qualifying for 100% Enhanced capital allowances need to be identified and researched.
Expenditure in relation to the replacement of integral features needs to be correctly disclosed.
Contributions by a landlord to a tenant’s fit out need to be correctly apportioned.
On going support
Where your accountant works with us we are always happy to discuss with them the implications of a proposed transaction or project in order to maximise your allowance. We do not charge for an initial consultation or quick telephone call or email.
We can prepare a fully auditable claim and report for onward submission to HM Revenue and Customs. We will also stay with you until the capital allowances proportion of the tax return is completely agreed.