Maximising Tax Efficiency: How HMA Tax Secured Significant Savings for an SME through Capital Allowances

Leveraging Capital Allowances: Recent Case Study

At HMA Tax, we understand how to claim tax relief for commercial property owners through Capital Allowances. For recent small and medium-sized enterprises (SMEs) referred to us by Gilson Gray, we managed to identify significant tax relief.

A great example of this is an office with an attached warehouse, purchased in 2013 for £650,000. Over the years, the owners made improvements and extensions totaling £158,450.

By partnering with HMA Tax, the business was able to claim £190,600 in Capital Allowances, leading to corporation tax benefits of £36,214, typically realised as part refund and part future reductions.

Embedded capital allowance claims are a significant, yet frequently overlooked mechanism for tax relief. A recent Solicitors Group study recognised that less than 20% of commercial property owners across the UK have claimed their Capital Allowances.

These allowances are in essence the tax-deductible value of fixtures and fittings that form an integral part of a commercial property. From heating systems to security installations, these fixtures may depreciate over time but can be a source of substantial tax savings. They could have been part of the property when purchased or added by you.

Why Claim Capital Allowances with HMA Tax?

Expertise in Capital Allowances: Our team’s specialised knowledge means we can navigate the complex landscape of embedded capital allowances, ensuring that SMEs like the one in our case study, reap the full benefits.

Comprehensive Property Survey: We leave no stone unturned. Our thorough analysis guarantees that every eligible asset is accountant for, allowing our clients to claim the maximum possible relief.

Enhance your Cash Flow: For SMEs where cash flow is king, our ability to minimize tax liabilities can be the difference between merely surviving and truly thriving.

At HMA Tax, we are dedicated to uncovering and maximising these opportunities for our clients, ensuring that every SME has the chance to bolster their business through informed and strategic tax planning.

For SMEs ready to explore the potential within their commercial properties, HMA Tax is the partner you need. Reach out to us and let’s uncover the hidden financial benefits in your property together.

Contact Andy Milnes at 01384 904090 or via email at andy@hma.tax for more information.