Capital Allowances for Professional Partners

Capital allowances are a complicated area of taxation that overlaps with other skillsets. When you claim capital allowances on qualifying expenditure, you can enjoy significant tax savings in Income Tax or Corporation Tax. As such, there are many scenarios in which professionals wish to explore the tax liability of their capital expenditure, whether on their own behalf or on behalf of their clients.

Unfortunately, capital allowances claims are frequently missed because expenditure is incorrectly classified, or because the tax position is not properly considered. It is vital to involve capital allowance experts from the earliest stages of a property purchase or construction project. At Monetta, we offer a partner service through which we can work on behalf of surveyors, solicitors and even other accounting firms to make the most of the substantial opportunities offered by capital allowances.

To learn more about how we can help, call your local Monetta office or use our online enquiry form to request a call back.

How Monetta Can Help

At Monetta, we are a client-focused firm. We combine the approach of a local business with a network of offices throughout the North West, from which we deliver high quality financial services to organisations throughout the UK. One of the foundations of our approach is building strong relationships with other professional firms, which enables us to deliver the best possible service.

Over the years, we have formed strong relationships and worked closely with solicitors, surveyors, financial advisors and even other accountancy firms who seek to ensure their clients get the best possible service. By applying our expertise in capital allowance claims and supporting other professional firms, we create a comprehensive and coordinated service from which clients can benefit.

It is always best to ensure that your clients enjoy the maximum value afforded by capital allowances. If you deliver any of the following professional services, get in touch with our team to learn how we can help your clients claim capital allowances:

Capital allowances for solicitors

As a solicitor involved in commercial property transactions, you can explore the possibility of a capital allowance claim against any capital expenditure incurred by your client. There are a number of situations in which Monetta is able to provide initial assistance. This includes:

• Setting out and reviewing capital allowances enquiries when buying or selling
• Provide the correct contractual clauses within a sale and purchase agreement
• Ensuring all parties are aware of their obligations with respect to mandatory pooling
• Preparing a compliant CAA2001 s198 election

Our involvement can save a solicitor time and effort, by verifying that the capital allowances are correctly addressed.  Not only does this help with the progress of the sale but it also ensures that an incorrect assertion does not prevent the claiming of capital allowances.

Capital allowances for chartered surveyors

If you have been instructed to sell a property, understanding the capital allowances position can provide you with an additional “selling point”. This is particularly the case if the seller has not claimed capital allowances - in these cases, there is a significant benefit available to a purchaser. Areas in which we can assist surveyors include:

• Establishing the correct capital allowances position
• Providing a sales aid by identifying the tax relief available
• Ensuring the correct narrative in the Head of Terms
• Liaising with solicitors to monitor that capital allowances are addressed correctly
• Preparing the capital allowances valuation and if appropriate the CAA2001 s198 election

The RICS red book suggests ignoring tax implications when valuing a property. However, in reality, clients would like to enjoy the tax benefits of capital allowances in cases where they are available. Our simple but effective approach can help progress the sale and ensure capital allowances are correctly dealt with in a way that will advantage your clients.

Capital allowances for accountants

Increasingly, accountancy firms use specialised services for specific elements of their work, and Monetta is no different. We frequently call on trusted advisors (which includes other accountancy firms) and, in such situations, we work on a strict ‘non-disclosure’ and ‘non-compete’ basis. To us, this is key to creating lasting business partnerships.

Some of the areas where we could help accountants include:

• Providing detailed and fully disclosed capital allowances reviews
• Monitoring compliance with respect to capital allowances
• Assisting in answering queries from third parties (including solicitors)
• Advising clients on the possibility of claiming capital allowances pre-purchase

Partnering with us is an opportunity to ensure your clients have been correctly serviced with respect to capital allowances. In these situations, we can often save you time - even if the circumstances lead to us undertaking a detailed review, in which we require some additional information, this is often the most efficient approach. We acknowledge the value of our partners' time and therefore offer a part of our fee to account for any time required on your part.

FAQs About Capital Allowances for Professionals

What are capital allowances?

Capital allowances are a tax relief mechanism that allows businesses in the UK to deduct the costs of certain capital assets from their taxable profits. These allowances are designed to encourage investment in business assets by recognising the depreciation of qualifying expenditure over time. By making a claim, you can deduct certain costs from your taxable profits and thereby reduce your Corporation Tax or Income Tax liability.

Claiming capital allowances can significantly reduce a business's tax liability, and free up capital for reinvestment. As such, this can be a fruitful opportunity for businesses that should not be lost. As a professional working on behalf of a corporate client, you should contact the team at Monetta for advice on taking full advantage of this tax relief mechanism.

What are the most common capital allowances available?

There are various types of expenditure incurred in commercial enterprises that may qualify for a capital allowance claim. As such, it is often worthwhile to consult an expert on behalf of your clients, and have us examine the available reliefs on your behalf. Common types of capital allowance that may apply include:

• Plant and Machinery Allowances
• Research and Development Allowances
• Structures and Buildings Allowance
• First-Year Allowances

When you claim capital allowances, you maximise the value of your capital expenditure and of the assets you create or acquire as a result. Whether that means plant and machinery expenditure during fit-outs of commercial properties, or purchasing new business premises, seeking tax advice can help you to feel confident in the financial and tax security of your decisions.

Why Choose Monetta?

At Monetta, we have worked on behalf of businesses of all sizes, throughout the UK, to take advantage of any relevant capital allowances to which they were entitled. We recognise that by building professional relationships on foundations of trust and reliability, we can support other organisations to help their clients clarify their tax obligations.

We have supported many professional service providers, including surveyors, solicitors and accountants, to deliver tax savings for their clients and for themselves. Our approach is built on investing in each client's individual needs, and understanding what they want to achieve from the outset, so we can make sure to deliver the highest quality service.

Contact Us

If you are a professional who is looking to help a client claim capital allowances and maximise the value of a transaction, contact the experts at Monetta today. Call your local Monetta office or use our online enquiry form to get in touch. Alternatively, visit our team page to learn more about our experts and the advice they can offer.