Property Capital Allowances allow businesses to get tax relief on Plant and Machinery (P&M) within the property. Most companies claim capital allowances on purchases of IT equipment, furniture and specialist tools for their trade – but smaller businesses and individuals typically miss out on the potentially valuable allowances tied up in these ‘invisible’ areas of their properties.
A spokesperson for ORA told Mortgage Introducer: “With Oliver Rae Associates acting as specialist Property Capital Allowances advisers, you can help your small business clients – as well as clients who own qualifying buy-to-let residential properties – get all the Property Capital Allowances they are entitled to.”
“Our PCA service can help your clients gain a significant tax relief based on the price they paid for the property and, in some circumstances, subsequent expenditure on it. In practice, this is often a five or six figure sum.”
Whilst the legislation makes it clear that eligible clients are entitled to this tax relief, a successful claim is dependent on accountancy skills, the legal entitlement to claim in given situations and the specialist plant and machinery valuation skills to correctly identify and value all allowable fixtures.
The spokesperson added: “Skills are required across diverse professions and what we have been able to do is harness those skills to allow them all to work under one umbrella, thereby leading to a successful conclusion for your client.”
Property Capital Allowances can be claimed on most types of commercial property, from retail or industrial units to offices and factories, to bars, hotels and restaurants, nursing homes, doctor/dentist surgeries, sports centres and even data centres. They can also be claimed on qualifying residential buy-to-let properties.
Under current tax legislation, property owners can claim P&M allowances on "fixtures" and "integral features", including heating systems; pipework; security systems; lifts; air conditioning; signage; water or gas installations; electrical switchgear and sanitary provision.
Although the Capital Allowance Act 2001 makes it clear that property owners are entitled to claim capital allowances, deductions are not made automatically with claims having to be submitted via tax returns. As a result, even though most commercial properties have claimable allowances, the majority of small businesses and individuals do not claim all that are available to them.
ORA can help these people gather the necessary information to make an accurate claim – and save thousands of pounds whilst still owning the property. They do not have to wait until they sell.
In order to qualify, clients must be UK Taxpayers; Limited companies or LLPs; individuals (deriving income from either PAYE, self employment or investment and dividend Income) but not a SIPP or a SSAS.
Between them, the directors of ORA have over 65 years experience in the financial services arena, and since founding ORA in 2009 they have looked to expand the portfolio of products and opportunities available to their partner firms.
