This is also called embedded capital allowances and can be claimed on items that are considered part of the property. These refunds are available to commercial property owners who may have been overpaying a great deal of tax.
The concept of these tax refunds may be a slightly new one to many people because a lot of commercial property owners believe that their accountants will have already made a claim for these allowances, however this is most often not the case because even the most efficient accountants are unlikely to have a specialist team or knowledge of the HMRC guidelines that are needed to deal with these claims. This is why capital allowance specialists are needed to help identify and make a claim.
Typically, the process of making a claim is quick and stress free and usually takes no longer than 10 weeks. The process itself usually requires minimum input from the property owner, as the capital allowance specialists deal with most of the work, which involves assessing the property details, surveying the property, preparing a report to submit to HMRC and then waiting for the cash refund. During this process, the dentist simply provides the relevant property details with which the specialists will use to identify and make a claim.
The type of items that could be claimed on within a surgery would include air conditioning, surgery equipment such as dental hand pieces, retractors and dental lasers, specialised lighting and more. These items are vital to the running of a surgery, so it’s important for surgery owners to claim what they’re entitled to on them.
Allan Mannion, business development director at Headley Meredith Associates explains: “One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it. In the case of commercial property, you need a specialised team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by an embedded capital allowance expert.”
Since there have been noticeable improvements in dentist surgery standards, the amount of cash tax refunds available has dramatically increased for surgery owners. This has meant that some claims can reach up to 40 per cent of the cost of new build premises, or as much as 75 per cent of the cost of a refurbishment.