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.

Become a Referral Agent for Capital Allowances

BECOME A CAPITAL ALLOWANCE REFERRAL AGENTS

A good accountant will openly admit that they don’t know everything about the vast intricacies of tax and VAT – A smart accountant will seek out the knowledge of those that do!

In order to fulfill all requests of a client every accountant from time to time will often seek out specialist help and advice. At Salmon Business, we offer a referral program where accountants can introduce their clients to our tax and VAT specialists safe in the knowledge that their clients will receive the most tax efficient information whilst at the same time receive a referral fee. This then allows accountants to concentrate on the elements they are more adept and qualified to working on.

For further details on how to become a referral agent for Salmon Business Group please call us anytime.

Call 01246 293011
Or visit 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

Britain becoming a less attractive place for the international super-rich, could prove a threat to the country's fragile recovery.

Less Tax?

MONEY TALK by Ronnie LudwigSaffery Champness

The levy has, however, contributed to making Britain a less attractive place for the international super-rich, which could prove a threat to the country’s fragile recovery.

According to research conducted in March 2010 by Cass Business School, the non-doms spend a total of £19bn in the UK each year, as well as contributing £4.5bn in income tax and £3.75bn in VAT and stamp duty.

However, at least 2% of them have already left since the introduction of the £30,000 charge and associated changes brought about in the Finance Act 2008.

About 25% fewer are applying to move to Britain, according to the same research.

Arguably, the loss in demand for British goods and services could far outweigh the benefits of £130m collected through the additional levy.

The more likely course of action, though, would be for the government to tighten the rules and increase charges for non-doms as a result of their review.

Here again, the government will be faced with a difficult balancing act between maintaining that ‘open for business’ sign the chancellor wants to see over Britain, with bringing in additional tax revenue.

An attack on non-doms will have side effects and could mean overall tax take goes down, rather than up.

EVERY BUSINESS OWNER IN THE UK TODAY IS STRONGLY URGED TO SPEAK WITH A TAX SPECIALIST TO DISCUSS WHAT ENTITLEMENTS THEY CURRENTLY HAVE AT THE FINGER TIPS BEFORE THE GOVERNMENT PUTS A STOP TO EVERY BENEFICIAL TAX AID.

For further information on making your Capital Allowance claim 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.

To qualify for a current or retrospective Capital Allowance claim, our criteria is a follows:

1. The acquisition of the commercial freehold property must have taken place within the last 15 years (preferably within the last 10 years)
2. The related acquisition costs exceed £300,000
3. The freehold property must be owned by the client personally or a trading company.
4. Subject to no restriction in the lease regarding capital allowances, a claim could be made regarding a long lease over 25 years where a significant premium has been paid, and / or improvements in excess of £300,000 have been taken.
5. We are happy to make a claim for the extensions on property improvements with a minimum value of £300.000.
6. New builds or purpose built offices should also qualify.
7. We can carry out current year claims.
8. And finally, the client has paid tax on trading profits or rental income during the last 2 years.

Providing you qualify against all of the above points, then you are eligible to make a Capital Allowance claim.

For further information on making your Capital Allowance claim 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.

The Tory Manifesto is about to close the Capital Allowances for Embedded Fixtures and Integral Features.

These refunds will be reduced greatly as the tax system is being simplified and complex claims are going to be abolished.

The reference says the Conservatives aim to cut the headline rate of corporation tax to 25p and small company rate to 20p funded by reducing complex tax relief’s and allowances. –see http://www.conservatives.com/Policy/Where_we_stand/Business.aspx second point on their priority list!

The opinion in the accountancy profession and of some financial guru’s is the Tories will attack capital allowances so I would strongly suggest clients act now or they will regret not doing so, this door will be closed in 2 years.

Salmon Tax Adjusters are the most competitive in the market, work on no win no fee basis, and the fee is not payable until the refund is in place – so you really have nothing to lose! Act now and get the Capital Allowances you are legally entitled to!

Whichever government was elected to lead us over the next term, cut backs were expected to hit business hard, and with Capital Allowances being amongst the most valuable methods of reducing property owners’ income tax or corporation tax liabilities. The Conservatives have stated in their manifesto that they are seeking to target this tax advantage.

Don’t miss out on these valuable tax advantages whilst they are still available to you – speak with an adviser today and arrange a FREE site survey NOW

_____________________________________________________________________________________________________________________________________________Contact Contact Salmon Business Group today on 01246 293011
Alternatively, visit us at www.salmon-business.com

With 50% first year allowances now scrapped and replaced by annual investment allowances covering embedded fixtures and integral features with 20% and 10% writing down allowances located accordingly. Is it any wonder many business owners are confused and are not claiming their full Capital Allowance entitlement.

A professionally prepared Capital Allowance claim could generate a substantial tax refund with significant tax reduction year on year. Capital allowance claims equate up to 35% of your freehold cost!

Capital Allowances arise from capital expenditure on:

Are you claiming your entitlement of Capital Allowances?

Capital Allowances are amongst the most valuable and least exploited methods of reducing property owners’ income tax or corporation tax liabilities. Capital Allowances arise from capital expenditure on:- Purchasing or Constructing a new property along with Extensions and Refurbishments.

We carry out retrospective, current year, and new build capital allowance claims, both for individuals and companies in relation to commercial properties right across the commercial sector. Most retrospective capital allowance claims that we handle lead to a significant tax refund for the client. We will quickly identify the validity of a claim without obligation. If a claim does not proceed there will be no fee.

We comprehensively survey the property which allows us to identify any qualifying items that, for numerous reasons, have previously not been claimed.

Enquiries: Telephone 01246 293011 or Visit: www.salmon-business.com