Hedge Tax Mitigation
“We can help you claim 10 to 30% of the purchase price as a tax allowance on qualifying properties in your portfolio. As an example that means on a £200,000 property you would have an allowance, or tax free income, of circa £40,000”
A quick guide for you
If you pay income tax on income from any source, whether on a PAYE or self-assessment basis, and want to reclaim some or all of the tax you paid in 2009/2010 and 2010/2011, as well as reduce the tax you pay this year then we can help. Hedge Tax Mitigation was launched to help property owners like you claim their rightful entitlement to tax allowances, by identifying capital allowances on their investment property.
What are Capital Allowances? Capital Allowances are effectively the tax equivalent of depreciation – in certain buildings there will be items which you can claim tax relief on, e.g. sanitary ware and floor coverings This is not a tax loop hole and it is your statutory right to claim Capital Allowances. Capital Allowances can be offset against income from any source, not just rental income. To find out more click here
Why haven’t you heard about this before? HM Revenue and Customs have allowed Capital Allowances on property since 1878 but the legislation was changed in December 2008. Unsurprisingly, the Inland Revenue has not spent money promoting these allowances. In addition, this is a very specialized field, spanning accountancy and surveying. As there are penalties from the Inland Revenue if the work is done incorrectly, the majority of accountants won’t undertake it, and most don’t even know it is possible. We recognize you may have used the same accountant for many years and we do not seek to replace him, but to add value to what he does. We will send our reports to him, once we have done the surveys on your property, so that he can make the claims on your behalf. To find out more click here
How much can you claim? We can help you claim 10 to 30% of the purchase price as a tax allowance on qualifying properties in your portfolio. As an example that means on a £200,000 property you would have an allowance, or tax free income, of circa £40,000, which can be claimed against income tax you have already paid or against income tax due in future years, depending on when you bought your property, and how much tax you have paid.