About Us


Capital Allowances on Property

James Hume MA ATT

James Hume MA (Cantab), ATT founded Property Capital Allowances in 2011.

Surprisingly high tax savings can be achieved for commercial property owners without them being aware they exist.  The hardest part of my job is convincing business owners to pick up the phone to discuss the possibility of tax savings in their particular case.  First and foremost, the majority of business owners rely solely on their accountant to deal with anything to do with tax. Secondly, there is a sense that this is like some mass marketing “claim” which business owners don’t like.  Thirdly, an almost total lack of understanding on what Capital Allowances even are prevents any spark of interest being generated in the business owners’ minds.

Achieving a bona fide tax saving for our clients is what we do best.  I read Economics at Cambridge University, joined Andersen’s graduate training programme in 1992, worked as a management consultant for 12 years, then worked in property and tax since.  I have a strong ability to understand business drivers – combining this with property and a taxation qualification allows me to deliver niche benefits to clients.
GP Surgery Property Capital Allowances
I delivered a GP practice owner over £100,000 in tax savings last year.  They were delighted.  This particular case was one where the GPs had spent £1.5m building a new surgery.  Their accouting team had classified some of the expenditure as qualifying for Capital Allowances but most of it as non-qualifying.  We carried out a detailed audit against the builders’ invoices and contracts, and were able to reallocate a substantial amount of expenditure as qualifying.  The business owner was a 45% tax payer so the tax value of this exercise was substantial.

Not all clients can achieve tax savings, actually the majority cannot achieve substantial savings.  A children’s nursery owner held the freehold property in her SIPP.  Normally this means Capital Allowances cannot be claimed on the property as pensions don’t pay tax.  However, there was a limited company which ran the business and which also paid for and owned the modifications, fixtures and fit out of the nursery.  The Fixed Assets were over £600,000 so a substantial level of expenditure had been carried out.  I advised the client we could probably find around £40,000 to £50,000 of additional qualifying expenditure.  In the end, we identified £138,000, with a corresponding tax value of £27,600.

It seems unlikely that such opportunities are available.  Potential clients can call me and within 5 minutes we can run through a feasibility.  Probably only 2 or 3 out of 10 continue after that point.  But for clients that stick with it, it’s 5 minutes well spent.

Even industrial units can contain a surprising level of qualifying expenditure.  Since 2008, it’s possible to claim for “integral features” including thermal insulation.  A self-storage facility was recently purchased for £750,000 and we identified £125,000 of qualifying expenditure.
Accountant capital allowances referrals
Many of my clients are referred either by accountants or other intermediaries.  Trust and lack of understanding seeem to be the main factor but everyone should have the opportunity to identify potential tax benefits they are missing out on.
Any commercial property owner should contact me, whatever the size, and whether they use the property directly or are commercial landlords.  Health centres, offices, shops, surgeries, nurseries, restaurants, industrical, anything. We also act for owners of residential blocks of flats or very large residential properties with 7 or more rooms.
Capital Allowances telephone interview
If I had a mission statement, it would be to reach out to every commercial property owner to ensure they have maximised the tax deductibility of their property assets.  Call me for 5 minutes for a confidential, no obligation telephone interview in which I can quickly assess the likely potential financial benefit.
I look forward to hearing from you.  With best of luck in your business
Yours sincerely
James Hume MA (Cantab), ATT
ATT Membership no. 199912

CALL US TODAY ON 020 3291 1943