MediEstates Pharmacy - Claim your Capital Allowances Tax Benefit

Claim your capital allowances tax benefit

What are they?

Capital Allowances are the only form of tax relief available to UK taxpayers for their expenditure on Commercial Property. The items that can be used to reduce taxable profits are usually inherent items of plant and machinery within the fabric of the building. These items are usually taken for granted within the overall purchase price of the property.

After a thorough investigation of the properties tax history, a value is attributed to items of equipment fitted to or within the fabric of the building. These are items that should they be replaced, would normally be written off against tax through your renewal, refurbishment, or capital accounts. What we are looking for are original, or replacement items not already tax utilised.

These items include radiators, heating systems, wires in the walls, switch gear, alarms, toilets, sinks, basins, door furniture and cabling among many other pieces of equipment.

What could this allowance be worth?

The value of these Capital Allowances is dependent on the type of property and its use. However a typical project will identify from 10% to 50% of the purchase, or build cost as an allowance. That allowance can be used to reduce income or corporation tax liability and in some cases could lead to a refund of tax paid.

How is this allowance used?

Your accountant could use up to 18% of the total allowances to reduce your tax liabilty every year.

For example if £100,000 of allowances are found then you could use up to £18,000 in the first year to reduce your taxable profits, which could be worth £7,200.

Could I lose the allowance?

Yes, if you sell your building and have not claimed. Your solicitor during the sale process will now ask if the allowances have been completed and what figure would you like to pass to the new owner. If you have not investigated the allowances, then you could be forced into doing so by the purchaser.

To qualify you need to own a commercial building that is in use. You need to have paid, or are going to pay tax and the price you paid for the building must be over £200,000.

This agreement is in relation to MediEstates Limited introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. To treat all information supplied by or on behalf of the Vendor in connection with the sale of the Business as confidential. Confidential information relates to: -the actual Vendors identity and all confidential information in respect of the Business; including but not limited to: any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employee's details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor's relationships with actual or potential clients or customers and the needs and requirements of such clients' or customers' operations.
  2. Duties of Prospective Purchaser are:
    1. To take such reasonable security measures to protect the Confidential Information as it takes to protect its own confidential information.
    2. All communications are to be through MediEstates unless agreed.
    3. That they shall not, without the prior written consent of the Vendor, permit any of the Confidential Information to be disclosed, other than in confidence to its legal or professional advisers, to be copied or reproduced; to be commercially exploited in any way; to be used for any purpose other than in connection with the prospective purchase of the Business; and to pass outside the control of the Prospective Purchaser.
    4. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    5. That they will not contact any 3rd parties related to the business for which information has been provided, i.e. solicitor's, employees, accountants, clients.
    6. That they will not under any circumstances contact the Local Area Team or CCG regarding any business sale, by any means of media unless written permission has been granted by the current Vendor.
    7. To carry out own Due Diligence once any business purchase moves to forward, and accepts that MediEstates Ltd only supplies information provided by the vendor and is not responsible for its accuracy or completeness.
    8. To lodge a deposit held in a client account to secure a business sale and cease its marketing, which is refunded on completion.
    9. To not use any social media at all regarding business details.
  3. If you require finance to purchase your business, or need other financial services, MediEstates on your approval will refer you to an FA to assist you. MediEstates may be paid a fee for this service.
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