Retrospective portfolio review: capital allowances

Gateley Capitus saved a privately-owned commercial property company nearly £200,000 of tax by reviewing its portfolio to find extra relief from unclaimed capital allowances.

After the claims were submitted to HM Revenue & Customs (HMRC) the client told us: “I was shocked that Gateley Capitus were able to identify so much capital allowances, thank you to the team for doing an excellent job!”  

What were the properties?

There were seventeen properties in total and the majority were industrial and leisure.  The average purchase price of each was only about £600,000.

How did we approach it?

We started by collating documentation to establish the tax history of the properties.  That meant liaising with the client’s solicitors and interrogating Land Registry and other property data sites that we subscribe to.

The information that we reviewed included:

• Sale and purchase agreements (SPAs)
• Tenancy schedules often appended to SPAs
• Pre-contract enquiries (CPSEs)
• Reports on title
• Land Registry title registers    
• Online subscribed property sites
• Agents’ marketing brochures 

Where we established that tax relief was available, we prepared specialist capital allowances apportionment valuations. This involved us using our surveying and tax expertise to value the land and prepare construction cost estimates for the buildings, all in accordance with capital allowances law and HMRC and Valuation Office Agency practice.  The detailed capital allowances claim valuations were then submitted to the client and their accountant to be filed with their tax return.

What was the result?

The outcome of our retrospective review was as follows: