HMOTAX – Capital Allowances

With a 100% success record with HMRC, we take a pro-active approach to identifying tax relief for property investors.

We combine the complexity of Tax Accountancy, with the technical areas of Quantity Surveying to provide a niche Capital Allowances service.

We were the first in the UK to identify this valuable tax relief, and have to date, surveyed nearly 2,000 Multi-occupancy properties, and identified over £75,000,000 in Capital Allowances for our clients like you!

Our fees are the most competitive around for a fully comprehensive survey. We offer outstanding value, and the refund or mitigation you receive far outweighs our fees.

We provide the following services:

 

Residential

Capital Allowances tax relief can be claimed on the qualifying items with the communal areas of Multiple Occupancy type properties. This includes key-worker accommodation, profssional multi-let properties (both licensed and non-licensed) andstudent HMO’s.

 

Typcially around 8% of the purchase price of your property can be claimed against your properties profits or ANY other taxable income stream (PAYE / Self Assessment etc)

Most businesses & individuals in business have an Annual Investment Allowance (AIA) of £250,000 for P&M. This allows them to write off 100 per cent of the cost of the qualifying plant and machinery against their taxable profits in a standard accounting period.

On expenditure over this amount, the standard rate of capital allowance is 18 per cent, although there are other rates depending on the type of expenditure. P&M attracts tax relief of between 8% & 100%.

Click here for a personal tax saving illustration

 

Plant & Machinery Allowances tax Relief:

Standard items that are claimable as Plant and Machinery include, but is not limited to:

Heating, air conditioning and extract ventilation, Hot water installations, Electrical transformers and switchgear, Emergency lighting, Fire Alarm installations, Power wiring to items of plant and machinery, Specialist lighting – illuminated signs, security lighting, etc, TV and aerial Systems, BMS systems, Generator and UPS systems, Fire fighting equipment, Computer installations, Security installations, Lifts and escalators, Welfare equipment, Catering equipment, Carpeting, Furniture and fittings, Dock levellers, Swimming pools .

Typical allowances as % of investment are shown here:

New BuildBuilding Type	PercentageRange	PurchaseBuilding Type	PercentageRange
Office: low rise basic	10 – 20	Office: low rise basic	7 – 18
Office: medium rise basic	10 – 30	Office: medium rise basic	7 – 25
Office: high rise basic	10 – 35	Office: high rise basic	7 – 28
Office: air conditioned	20 – 35	Office: air conditioned	15 – 30
Office: prestige HVAC	25 – 45	Office: prestige HVAC	20 – 40
Shopping Centre: covered	10 – 20	Shopping Centre: covered	12 – 18
Hotel: luxury city centre	30 – 50	Hotel: luxury city centre	25 – 45
Hotel: provincial	20 – 40	Hotel: provincial	20 – 35
Leisure centres	15 – 25	Leisure centres	12 – 20
Hospitals	25 – 40	Hospitals	23 – 35
Doctors’ surgery	15 – 25	Doctors’ surgery	10 – 20
Alteration works	40 – 60	Multi-let / Student Accom	18 – 27
Refurbishments	25 – 50	HMO	15 – 20
Fitting out works	50-100

 

Most businesses & individuals in business have an Annual Investment Allowance (AIA) of £250,000 for P&M. This allows them to write off 100 per cent of the cost of the qualifying plant and machinery, up to a value of £100,000, against their taxable profits in a standard accounting period.

On expenditure over this amount, the standard rate of capital allowance is 18 per cent, although there are other rates depending on the type of expenditure. P&M attracts tax relief of between 8% & 100%.

To Discuss these types of allowances and how you may benefit from them, give us a call on…