Cavetta Consulting: Unlocking Capital Allowances
What if I told you – you’re paying too much tax on your furnished holiday rentals? The tax man’s happy but what could that money be doing for your family and your lifestyle? Alan Cadden from Capital Allowances Specialists, Cavetta Consulting, has over the last seven years put that tax pound directly back in your pocket. Alan explains more:
‘In the context of Commercial Property, Capital Allowances are a tax deduction given to the taxpayer to compensate them for the wear and tear of fixtures and fittings. For example, a carpet will wear out over time, so now tax relief is here to mitigate this cost.
‘Typical items such as power, lighting, kitchens, bathrooms, heating, fire and security alarms will qualify alongside many other items in your building. This is only available for a property where a business is carried out, not for a residential property.
Raising Awareness for Tax Payers
‘We can help commercial landlords or businesses that own or lease business premises. It does not need to be a brand-new property. They could have owned or leased it for years, spent money buying or improving it and still be able to claim.
‘So typical businesses are restaurants, shops, doctors, dentists, gyms, Airbnb owners and furnished holiday let owners.
‘The first step is to raise awareness. Shockingly, over 70% of taxpayers that can claim this relief miss out.
‘The second, is to work closely with a client’s accountant. This will help us to identify situations where the tax relief needs to be valued by a professional valuer rather than stated from the invoice which accountants typically do as part of their work.
‘HMRC actually warn us of the difficulty accountants face where property is concerned: “the main difficulty in determining whether an asset qualifies as plant or machinery comes when assets are incorporated into buildings” (CA2006).
So, we use our skills as charted valuers to help your accountant to claim this valuable tax relief. Last year alone we saved holiday let clients over £137,000 by valuing £700,000 of fixtures and fittings in their properties. What could we do for you?’
Furnished Holiday Let Property Owner?
Get in touch to see if Alan can save you tax money on your Airbnb style property.
Tel – 0770 333 4317
Unlocking Capital Allowances
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