URGENT  EARLY  WARNING RETROSPECTIVE  CAPITAL  ALLOWANCE  CLAIMS WILL  SOON  BE  TIME-BARRED

Buried within the 240 pages of the HM Revenue & Customs “Overview of Tax Legislation & Rates” dated 23.03.2011 (Budget Day) we have discovered the following little bombshell, which has very large and negative consequences:-

Paragraph 3.59 Capital Allowances:- Fixtures Mandatory Pooling

“The Government will consult on plans to introduce changes to the capital allowances Fixtures rules that businesses must pool their expenditure on Fixtures in a building within a short period of acquiring the building, in order to qualify for capital allowances.  A consultation document will be published at the end of May.”

At this stage we have no knowledge of what the Revenue believe to be “a short period” but it seems logical that they will start the ball rolling at two years (being the normal CT/600 amendment window); if so it will be the duty of every tax advisor to write and try to have the proposed time-bar extended (at least in the initial years).

Based on experience to date of such “HMR&C – Consultative Documents” we must assume that legislation will be introduced to limit retrospective capital allowance claims, probably from April 2012 (possibly earlier) – the unknown factor being what will the time limit be – and this is likely to be the only negotiable point in the Consultation.

There will be some tax advisors who read the above and say – “so what” – well here is a “what”  – Once a specific time-bar is in place if the advisor has failed to advise their client (in writing) of the implications, prior to the legislation becoming operative, then they face a very real possibility of a Professional Negligence Claim being made against them, if that client could have had a potential retrospective capital allowance claim outside of that time-bar.

The moral is you have been warned – now is the time to be checking all of your client files to see if they hold substantial freehold / long leasehold properties or indeed capitalized tenant’s improvements, which may well contain embedded Fixtures within the building, that could qualify for a retrospective capital allowance claim.

It should be noted that Contracts of Purchase often refer to an inventory of – Fixtures & Fittings / Chattles / Plant & Machinery – which will usually have been brought into the purchaser’s computation as an opening capital allowance pool balance but, it is much rarer to find reference to Fixtures within the contract, especially in the absence of a Section 198 CCA 2001 Election. In such cases it will usually require the expertise of a proven, specialist, capital allowance company to identify and value the embedded qualifying fixtures – we are that company.

This limit has largely gone unnoticed by many, and will almost certainly see many claimants who were originally entitled to take advantage of  these lucrative tax benefits missing out.  Salmon Business Group are now strongly urging everyone who we have already contacted regarding their claim to really sit up and take action NOW, or stand to lose £1000’s in tax rebates.

For further information regarding your Capital Allowance claim, please contact one of our Capital Allowance specialists to get your claim underway.

NDNA members can expect to find details of this tax allowance in their next email newsletter

Salmon Business Group are providers of Capital Allowances to Day Nursery owners

Salmon Business Group were shocked as to the number of day nursery owners who have not yet taken advantage of their most lucrative tax benefit – Capital Allowances.  A Capital Allowance claim quite literally holds to keys to unlocking £1000’s in overpaid taxes, as well as providing on-going tax relief for future years.

The amount of tax benefit you can expect to acheive will vary dependent on the total acquisition cost of your building together with any subsequent improvements you might have made. The other consideration which have a bearing on the total identified tax pool will be the rate of tax you pay.

With such a large number of nursery owners who own the freehold to their day nursery having not made this claim, Salmon Business Group are now trying to spread the word of this tax benefit to as many nursery owners as possible.  National Day Nurseries Association members can expect to find out more about this tax allowance in their next email newsletter. If however you are not a member of the NDNA, don’t panic – simply visit call us direct today and ask to speak with one of our tax specialists and discuss your potential claim.

Call Salmon Business Group on 01246 293011
Alternatively, visit our web site for further information -
www.salmon-business.com

Capital Allowances

How Much is a Typical Capital Allowance Claim Worth?

Whilst every case is different, and each sector has its own expectations, as an average we would hope to identify additional capital allowances of some 20% – 35% of the freehold cost.

Below are some typical examples and amounts we have successfully processed.

OFFICES: A claim in excess of £146,000.00 was acheived. __________________________________________________________________ CARE HOME: A claim in excess of £374,000.00 was acheived. __________________________________________________________________ HOLIDAY PARK: A claim in excess of £360,000.00 was acheived. __________________________________________________________________ CARAVAN PARK : A claim to date for a single park was £1.8 Million __________________________________________________________________ HOTEL: A claim in excess of £169,000.00 was acheived regarding an extension to the hotel. Our largest Hotel claim to date is £2.7 Million. __________________________________________________________________ DAY CARE NURSERIES: A claim in excess of £62,000.00 was acheived. __________________________________________________________________ HOLIDAY COTTAGES: A claim in excess of £126,000.00 was acheived. Our largest claim to date in this sector was £196,000.00
We will quickly identify the validity of a claim without obligation. If a claim does not proceed there will be no fee. Your next step To get a more accurate figure as to the amount you are entitled to please contact one of our Capital Allowance specialists where we can arrange a suitable time to visit you. VISIT US AT: www.salmon-business.com Call 01246 293011

Assisting Day Care Nursery Owners in Reclaiming and Reducing Their Taxes

If every nursery owner has a different idea of what their ultimate “Wish List” would look like (a list of educational equipment and safety features they would like to incorporate within their business), then they all certainly have the exact same obstacles in acquiring their list – this being the  NECESSARY FUNDS to pay for them!

IF ONLY WE HAD ENOUGH FUNDS TO BUY……….

The plain and simple fact is that the vast majority of day nursery owners do have access to £1000’s in the form of a tax rebate from years of overpaid taxes.

HOW TO RECOVER YOUR OVERPAID TAXES

The process of reclaiming your over paid taxes is available in the form of a Capital Allowance claim.  Capital Allowances have been created by the government and allows business owners the ability to offset taxable profits against the purchase of capital assets for your business, and a tax payers right to claim.  Providing you have paid tax on any profits you made within the last 2 years, then you will be entitled to make a retrospective capital allowance claim and receive a lump sum in the form of a tax rebate.  Also by making your capital allowance claim you will also automatically begin to reduce the amount of tax you pay in future years.

The result of your capital allowance claim will allow you to purchase your “WISH LIST”

Capital Allowances are somewhat of a specialised area, and in order to fully maximise your potential claim you are advised to seek specialised help and advice.

To arrange an informal meeting with one of our Capital Allowance specialists, please call us today on: 01246 293011, alternatively email sales@salmon-business.com

Further help and information may also be found on our web site at www.salmon-business.com

Asquith Day Nursery make significant investment to ensure complete peace of mind for parents

Fortress nursery scans parents’ fingerprints when they pick up their children

Mark Prigg, Tim Ross and Laura Lambert
14.07.10

London’s first “fortress nursery” is to open within weeks amid rising fears about the safety of children.

Asquith Day Nursery in West Dulwich is installing an £80,000 security system, previously only seen in secure facilities, to ease parents’ fears after a spate of shootings and stabbings in Lambeth.

Surrounding the school is a wooden fence more than six feet high and leaves no possibility of peering into the outdoor areas or windows.

In order to collect their children, parents have their fingerprints scanned at an outer set of doors before entering a frequently changed pass code at a second set.

There is also a list of names with accompanying photos to identify those who have been cleared to collect one of the children, which staff check manually.

Nursery manager Michaela Waitman said: “Every parent we have spoken to about the new security and educational programmes loves the concepts.”

Asquith now plans to spend £1.8 million rolling the scheme out across the company’s 84 nurseries nationwide.

However, experts today accused the nursery of introducing excessive measures, and warned that the high security could affect children’s development.

Simon Davies of Privacy International said: “Children have a right to privacy, to develop in a normal environment so they can become normal people. It is a difficult balance between children being safe and having freedom, but this is overkill.”

Margaret Morrissey, founder of campaign group Parents Outloud, said the scheme was “bizarre”.

“Quite frankly there isn’t that sort of security in Wandsworth prison,” she said. “Nobody is going to convince me that anywhere — let alone Dulwich — needs that kind of extreme security.

“After the care that children are given, the safety of access is the priority for parents. But any nursery that goes to the level of finger-printing has obviously got far too much money and ought to be reducing the fees. It will make children very nervous and over-protected.”

Asquith Nurseries CEO Andy Morris today defended the move. “Our top priority is child safety and security,” he said. “This pioneering programme goes further than ever before towards providing a totally safe environment for children entrusted to our care by parents. I have banned mobile phones from all our nurseries to make sure no one can photograph children on the premises.”

Ofsted obliges nurseries to carry out Criminal Record Bureau checks and suggests verbal references for staff. Asquith also insists on written references.

But how can smaller Day Nurseries afford this type of Security?

Asquith Nurseries is indeed a very large group, with a portfolio of 84 nurseries nationwide, the financial status of Asquith does allow them to make this size-able investment in ensuring all children in their care are kept as safe as possible.  Asquith Nurseries have stated their intension to spend in the region of £1.8 million in rolling this new security scheme out to all 84 of it’s day nurseries.

Organisations the size of Asquith are few and far between, and with the vast majority of the UK’s day nurseries consisting of much smaller companies, the ability to invest in the new security demands of parents is simply not a financial option.  However, the majority of Day Care Nurseries and Private Schools do have the ability to reclaim £1000’s back from the revenue in the form of overpaid taxes, as well as reducing the amount they will have to pay in forthcoming years.  As an owner of a commercial property, Day Care Nursery owners are entitled to make a Capital Allowance claim on their building(s).

The result of a Capital Allowance will allow you to invest back into the business, enabling you to purchase items such as:

_______________________________________________________________________________

Capital Allowances are a tax payers right! It is NOT an avoidance strategy.

For further information on making a Capital Allowance claim on your Day Nursery and to arrange your FREE site survey, please visit our site www.salmon-business.com

alternatively, call one of our Capital Allowance specialists on 01246 293011.