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Work with commercial property? Are you a commercial Mortgage Brokers or Real Estate Agent? Then you or your firm could be missing out on thousands of pounds in additional commission through ignoring the Embedded Capital Allowances held within commercial properties.

Embedded Capital Allowances are a form of tax relief for ‘capital’ expenditure, held within commercial properties for your clients buying or selling commercial property; these allowances likely hold thousands of pounds in tax relief.

How to use Capital Allowances to increase your total commissions

To ensure your Clients and contacts are receiving the maximum tax relief they are entitled to‭, ‬we offer property professionals and firms the opportunity to partner with HMA Tax‭.‬

For an introduction, we offer 10% of our total fee and up to a 20% of our total fee for our ongoing referral partners. ‬All you need to do is make the introduction and we will identify and claim allowances on your clients behalf, providing them with either a tax refund or ongoing tax relief and will pay you a percentage of our fees‭.

How do Embedded Capital Allowances work

Commercial buildings hold embedded assets within the property. By identifying, valuing and claiming Capital Allowance, with in the input of surveyors and tax specialists, HMA Tax can reduces a business’s annual taxable income, which in turn reduces the tax it has to pay.

As the assets are embedded within the Building, the tax relief is available for the current owner of the building, unless they have been previously claimed.

If Capital Allowances are available, then a significant proportion of the properties purchase price can be claimed as ongoing tax relief or a tax refund.

Assets that attract greater or faster tax relief include air-conditioning and water systems through to data cabling and lighting.

What are the benefits of claiming capital allowances?

As the example above shows, claiming capital allowances allows you to claim a proportion of your investment expenditure back against your taxable income or profits. This reduces the amount of tax payable on your profits and frees up cashflow for further investment in your business.

This is typically valued at 26.5% of the properties purchase price, so it is well worth considering a claim as they are often significant and worth while for your client.

Who can claim Capital Allowances?

Capital allowances are available to property occupiers and investors, and both income and corporation tax payers. They are a valuable incentive to almost all businesses.

If you have recently incurred capital expenditure to buy, build or refurbish commercial property and you pay income or corporation tax, then it is likely that you will be able to benefit from capital allowances. 

If you are a Commercial Property Broker or work in the commercial property sector and would like to find out more, please call Amy Lombardi, Senior Claims Specialist on 01384 904090 or email for more information.