The capital allowances team combines property, quantity surveying and tax experience
WHAT WE DO
Did you know that a significant part of the expenditure you incur, whether as a tenant or owner, qualifies for tax relief via the capital allowances legislation? It is not unusual for us to find that up to 80% of your retail store fit-out costs qualify for relief. For example, for every £100,000 of capital expenditure incurred on a store fit-out, you could expect to save between £15,000 and £20,000.
Within CBRE we have a team of capital allowances specialists who have property, quantity surveying and tax backgrounds and we have extensive experience of providing advice to retail clients during the design, construction, acquisition and disposal process. We specialise in undertaking fully disclosed and detailed capital allowances reports that can be submitted to Her Majesty’s Revenue & Customs (HMRC), to support your claim for capital allowances purposes and we have an exemplary track record in agreeing claims with HMRC, without having to reduce the level of qualifying expenditure.
HOW YOU BENEFIT
Many retailers rely on in and out-of-house accountants to identify their capital allowances. Following the traditional approach, the accountant is brought in at the end of a refurbishment programme and provided with the capital expenditure information from the project team.
Regularly these details do not include the pricing breakdowns the accountant requires in order to make an accurate assessment of what elements qualify for capital allowances purposes.
The accountant is forced to seek more information that does not exist, resulting in considerable costs and/or time delays.
Without the necessary property expertise, they struggle to collect what they require from all parties involved, such as mechanical & electrical consultants.
To avoid this, many make safe estimates based on incomplete information.
As specialists with expertise in property and tax, we become an integral part of your project team, and we advise on the ‘tax efficiency’ from inception through to completion of your retail store fit out.
We manage the information flow of detailed cost breakdowns, and when this is not available, we have the expertise to produce estimates where required.
Subsequently, we draft our claim reports in line with your main contractor’s final account and then reconcile this to your fixed asset ledgers.
Following the completion of the claim report, we then deal directly with HMRC to agree the claim on your behalf.
In this note, we set out the key issues which Brexit is already raising for retailers. Migration controls and currency movements may mean workers are less ready to work in the UK retail industry, which may increase time and cost. Currency devaluation will also generate more general cost inflation, though not everyone is a loser from these effects, and cost increases may spur yet more innovation in an already dynamic sector. The good news is that this year isn’t all about Brexit. The bad news is there are other more pressing concerns in 2017, with the rating revaluation and apprenticeship levy among the factors which retailers will have to grapple with. As always in retail, the winners will be the most agile and forward-thinking.
• CBRE’s 2017 Outlook report provides a comprehensive overview of the key trends affecting UK property markets in 2017. Alongside core sections covering the economic, political and investment outlook there is coverage of every major investment and occupier sector.
• There is an improved global economic outlook, but inflation is now a more significant risk than previously. There is less concern about emerging markets.
• UK GDP growth is expected to slow to 1.4% in 2017 due mainly to Brexit-related uncertainty and a tighter labour market.
• The Brexit process will mean a very uncertain 2017, with some volatility in markets expected even if the underlying economy is performing well – not least when Article 50 is served.
• 2016 investment volumes likely to be 30% down on a very strong 2015, with 2017 slightly weaker than 2016.