Capital allowances claims - am I missing the point?
Twice in as many weeks, clients have contacted me because they have been contacted by people who want to claim their capital allowances and take a percentage based on the claim. I have also received a letter from a company which uses dramatic language and spectacular figures to justify its existence. Apart from the fact that their fees if successful are enormous, I would like to know why they think that accountants aren't already claiming what is due. I know that some capital allowances can be very grey areas but if I consider that I don't have sufficient expertise in a particular area I ask someone else! I am aware that there have always been people who specialise in capital allowances but it appears to me that there are now possibly unqualified people looking to scare my clients and discredit me and other accountants.
Does anyone else feel like this or is there a genuine need?
Fixtures claims
You don't need to be qualified to act as a tax agent or adviser or accountant. These firms are looking for your clients who have commercial properties they survey the property, research its history and make claims. This consultation by HMRC may have prompted a lot of people onto the bandwaggon.
Incidently, if you do want advice in this area and feel that your clients may be missing out then please do contact me and I can assist you.
Virtual Tax Support for accoutants: www.rossmartin.co.uk
Capital Allowances Claims
Yes there is a need for good quality capital allowances companies who can identify plant and machinery within purchased property that an accountant would not easily be able to value. The best companies use surveyors who are not only Members of the Royal Institute of Chartered Surveyors (MRICS) but also members of one of the tax associations such as the Association of Tax Technicians (ATT) or its equivalent.
We act as an introducer to three such companies and we have seen the letters that are being sent to accountants using provocative language. I obviously don't have sight of the letter you have received but depending on the nature of the property it could be the claims made are not as outrageous as you might think.
Making a capital allowances claim rarely makes a difference to the capital gains tax position on disposal but this is the most commonly held belief by accountants that we come across when it comes to dissuading clients that there isn't any benefit to having a claim undertaken.
I would be happy to speak in person to discuss the issues and if you wish to pursue the matter further I can recommend you to a company who will work closely with you. Two of the people we talk to are regular contributors to these pages and I must admit I am surprised one of them has not picked up on your question as they normally beat me to it.
John Plumridge
Easyjet carried this ad
It's about claiming allowances for the parts of let buildings that are accessible to the public - I think. Very obscure and not an area I've had any dealings in, so don't quote me. There has been more detailed comment on this in the past.