Unsubstantiated Capital Allowances Claims

At the 1994 Berkshire Hathaway annual meeting, when discussing the questionable practices of insurers at the time, Warren Buffett quipped, “You don’t find out who’s been swimming naked until the tide goes out!” This now-immortal quote rings as true today as it did 30 years ago, and with the tax return season beginning to enter its full swing. It may provide food for thought when considering how to deal with your clients’ Capital Allowances.

Are you submitting the correct Capital Allowance Claim?

When presented with mountains of records for clients who have either purchased or carried out a major refurbishment of their commercial property, it might be tempting to take shortcuts. For instance, does the following pattern of thought sound familiar?

“My client has spent £1 million on a refurb but the records are a mess! At least 20% of that is probably claimable for capital allowances, so I will put that into the tax return.”

There is a hugely important question you have to ask yourself before committing to this approach: how easy is this going to be to justify to HMRC if it is scrutinised?

As we have found out in recent times, with the scrutiny HMRC have been putting on certain R&D claims, if an error is deliberately made or intentionally hidden, the penalty can be as much as 100% of the tax lost. When penalties like this are enforced, they can have devastating financial implications for clients. As well as resulting in untold amounts of stress and time spent bringing matters to a conclusion. This represents a deeply unsatisfactory outcome for both the client and their advisers. Particularly when considering a solution is readily available – refer this work to a specialist.

STax – The Capital Allowance Experts

Here at STax, we are a fusion of Quantity Surveyors and Tax Specialists who are committed to producing robust Capital Allowance Claims that not only protect your and your clients’ positions but also ensure that they are claiming all the Capital Allowances they are entitled to.

Over the last decade, STax has helped its clients claim more than £400 million, and in the last 12 months, we have won six industry awards, recognising our expertise in the field of Capital Allowances.

Contact STax to find out more

To learn more about what Capital Allowance Claims are possible on your property, contact the STax team. Complete the contact form on our website, send us an email to sales@s-tax.co.uk, or call us on 020 7147 9940.

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