CA’s – The details

Valuation

We are Specialist Plant & Machinery surveyors and provide an unbiased valuation of the qualifying assets within your property. For an Holiday Let property, this will typically take an hour or so. We need to do this, in order to identify, log and value the Plant & Machinery assets within.

This, along with some further basic information we require, and a due diligence undertaking, to confirm entitlement to claim, is then processed through our system, and generates a HMRC compliant claim report.

The report generated, is of a format commonly accepted by HMRC, and highlights the applied legislation, confirmation of ownership, and scope of the report. The assets identified, are categorised and valued in accordance with the Valuations Office Agency rules.

Claiming

Your accountant can submit an adjustment for you for these years, claiming a refund of overpaid tax, due to not claiming Capital Allowances. We recommend that the claim report provided is submitted with the correspondence to HMRC.

If you don’t have an accountant and file your own tax returns we can guide you through the process.

If you pay tax through PAYE, and complete a UK property section in your tax return, then there is a time restriction to 22 months. This means that up to the last 2 years of income tax may be claimed against.

We work alongside your accountant, and will provide support and advise wherever necessary to achieve this.

YOU CAN START CLAIMING BACK YOUR 2018/19 TAX FROM TODAY! AND YOUR 2019/20 FROM MID APRIL 2020!!

The Details

Plant and machinery for Holiday Let properties in the UK or EEA includes the following countries:-

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Republic of Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK

Assets you can claim Tax relief against include:-

Swimming Pools, Jacuzzi’s, Saunas, heating and air-conditioning, wiring to fixed plant, switchgear, emergency lighting, fire alarm installations, sanitary fittings hot water installation, carpets and removable floor coverings, fittings and furniture firefighting equipment, mechanical door closers, security equipment, telecommunications installations, trade and information signs etc.

This list is by no means exhaustive but provides a guide to the plant & machinery most commonly found in these types of properties.

In addition, expenditure incurred on certain other assets including fire safety, thermal insulation and building alterations incidental to the installation of plant and machinery may also be eligible.

The rate of relief varies from 100% in the year of purchase (AIA / FYA), to 18% (WDA).

Who Can Claim?

  • You must be a UK Tax Payer (Either Income tax, or Corporation tax)
  • You must use the assets in course of a trade.
  • You must incur the capital expenditure.
  • There must be ‘qualifying’ items of expenditure or ‘qualifying’ buildings.

What Can Be Claimed?

Expenditure incurred on:-

  • The original purchase of the property
  • Any Refurbishment or alteration works to existing property

You can read the fine details of all the Capital Allowance schemes on the HMRC site.