Capital Allowances – A Fresh Perspective

February 21, 2025

As a business, you constantly strive to improve, ensuring that your clients always come first. After all, what good is a consultant who doesn’t listen to their clients’ needs? Understanding their experiences is key to refining our services and delivering even greater value.

With this in mind, we decided to reach out to a few of our clients to get their feedback on the claim experience. What worked well? What aspects stood out to them? And most importantly, how did it impact their business?

 

” I had no idea this was possible”

This particular client purchased their property just over a year ago. No refurbishments, no major works – just a straightforward purchase. Yet, through our specialist knowledge, we were able to break down their purchase price, and identified over £130,000 in capital allowances, resulting in a tax saving of approximately £50,000.

 

“The process was surprisingly quick”

The due-diligence process varies from client to client. In this instance, within a month, the allowances were calculated, a Valuation Report prepared and sent to the client’s accountant to amend their tax return and claim the allowances. We identified additional tax relief opportunities for this client using our specialist knowledge and it just goes to show that even the most experience general accountant cannot be expected to cover all bases.

 

“I always thought tax was complicated, but this is almost like a personal allowance – except it’s just for your property income”

Capital Allowances are offset against the taxable profits of a business, therefore reducing the overall tax liability. This is particularly prevalent for Furnished Holiday Let (FHL) businesses, as the allowances currently can only be offset against the profits of the FHL income. However, following the abolishment of the scheme on 1st April/6th April, FHL income will merge and form part of property income.

 

“Turns out it wasn’t too late to claim”

More recently, we helped another one of our clients – specifically a manufacturing business – uncover £1Million in unclaimed allowances, resulting in a £250,000 tax saving. They were completely up to date with their current year claims yet hadn’t been made aware of the ability to claim retrospectively. This is a perfect example of how hidden value can be unlocked with the right expertise and approach.

 

“A fresh perspective can be a good thing”

Our client went into this process unsure of whether there’d be anything more they could do. They had already worked with other specialists to maximise tax relief, so we weren’t expecting much. However, after a review of their historic tax computations, it was clear there was still money left on the table.  By amending their historic tax computations our client was able to receive a substantial rebate for tax already paid, allowing them to reinvest back into their business.

 

Lessons from the Client Experience

From listening to our clients, the following key themes clearly stood out:

  • Specialist Knowledge Unlocks Hidden Value – Even the most seasoned professionals may not be aware of niche opportunities and can miss things. Working with specialists can uncover benefits that would otherwise go unnoticed.
  • Efficiency and Speed Matter – The ability to deliver results in a timely manner significantly enhances the client experience. Nobody wants to be stuck in lengthy processes, especially when financial benefits are at stake.
  • Clear Guidance Makes a Big Difference – Clients depend on expert guidance to navigate complex matters. Providing transparency and clear communication throughout the process is essential in fostering trust and confidence in the service offered.
  • Making Tax Relief More Accessible – Hearing a client summarise their own experience, is refreshing for us too. It reinforced just how important it is to make nuanced areas of tax, such as capital allowances, more accessible. Understanding how clients perceive and explain these concepts helps us refine the way we communicate, ensuring more businesses can benefit from the opportunities available to them.
  • Health Checks: A Smart Move, not a Sign of Trouble – A fresh set of eyes on your tax position isn’t about finding mistakes but ensuring nothing’s overlooked. We work alongside accountants to complement, not replace, their expertise. Sometimes, a review shows everything’s in order, giving clients peace of mind. Other times, we find savings that impact the bottom line. Either way, it’s a win – peace of mind or extra savings, both are valuable outcomes.

 

Final Thoughts

Speaking with our clients has been an invaluable learning experience for us. It reminds us that a successful claim isn’t just about the numbers – it’s about ensuring the process is smooth, efficient and truly meets each client’s unique needs.

At Bonham & Brook, we make tax relief simple and effective. Whether it’s uncovering hidden savings or ensuring you’re in the best possible tax position, we’re here to help.

If you want to explore your capital allowances potential, get in touch with us today.

 

Share This: