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Retrospective capital allowance claim on commercial property

I have a client that has several investment properties and we have recently engaged the services of firm of Chartered Quantity Surveyors in order to perform a capital allowances review on these properties. The report has identified a significant value of expenditure on items qualifying as plant and machinery. My questions are:

  • In order to claim these capital allowances, do I have to resubmit corporation tax returns and computations, for each of the years in which expenditure was incurred? If not, what is the best way to do this?
  • I understand that there have been changes in legislation regarding capital allowances on commercial property, effective from April 2012. Will this affect the claim?


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13th Apr 2012 10:00

Tax Adjusters -run by an Accountant for Accountants

Ring Tracy or Stephen Hughes 01427 754466

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13th Apr 2012 11:21


CA can only be amended by amending a return. the current and preceeding one are generally the only ones you can amend.

Say, if you bought the property in an AP ending over 2 years ago, (but still in AIA period) you would be deemed NOT to have claimed AIA. You can bring the value into the pool in the years you can amend but will only be able to claim WDA at main or integral feature rates.

I'm not sure you really need any more formal advice... the difficult part in all of this is what the Surveyor does, and you just need to ensure that you get a good quality report, that investigates all areas and isn't too excessive (lets remember that they are not necessarily experts in Capital Allowances).


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13th Apr 2012 11:33

Spot on

As a simple PII Underwriter it pays to keep it simple, if I want to know how many bricks i need to build a house i instruct a QS to tell me and pay his fee, if I want Tax advice I ask my Accountant and pay his fee.


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By recoup
15th Apr 2012 16:45


Hi Ian

As a rough guide, your client can get a cheque from HMRC for 20% of the CA claim for last years adjusted return, and offset another 20% this year.

The rest is dealt with in tax returns over the next few years.

The changes only affect if you're buying or selling. If your client already owns the property, and is making a claim now, it's more or less business as usual. Here's an article that explains a little more


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By plummy1
16th Apr 2012 16:24

Capital Allowances Claims


Just a couple of points. 

i) I hope your quantity surveyor knows enough about the capital allowances act to be able to determine which expenditure can be divided between the main pool and the special rates pool. if not this could become an issue.

ii) Picking up on Maclom Richards point. Malcolm I'm not sure how well you know the capital allowances claims legislation. For capital allowances claims I would recommend using a surveyor who is also fully trained in taxation preferably a member of the ATT or CIOT. 

Although this may cost you more it will undoubtedly produce better results for the client and also ensure full compliance with the tax legislation.


John Plumridge 

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