Interview with Arthur Kemp – How to Take Full Advantage of Capital Allowances for Serviced Accommodation Properties

The Serviced Accommodation Property Podcast

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In this podcast, Kevin talks to Arthur Kemp his capital allowances surveyor. They discuss how you can use capital allowances to maximize your profit by legally paying much less tax as a SA property owner. Arthur explains how to use them to get tax relief when you buy a property, update it, even how to reduce corporation tax and potentially other taxes.

Arthur lists out each kind of property that can be claimed against and highlights some of the less obvious investment opportunities that are available. He explains, in detail, how to check that you will be able to claim before you buy. They also briefly discuss land remediation relief that can generate a 150% tax deduction.

KEY TAKEAWAYS

• Used properly, capital allowances can legally save SAP owners a huge amount of tax.
• The inland revenue state that 96% of all property transactions haven't maximized their capital allowances.
• Up to 28,000 pounds of taxes can be saved for every hundred thousand pounds of expenditure using capital allowances.
• Capital allowances have been around since 1878, it is a legitimate way to save tax, not a loophole.
• You can claim capital allowances when you buy assets that you keep for use in your business.
• The allowance is for the cost of plant and machinery. A category that can include property and some of the work you have done on it.
• You can use the allowance at the time of purchase, for improvements, furnishings, and in other ways.
• It is also possible to reduce the corporation tax bill for a Ltd company.
• Using sideways loss relief, you can even potentially save on your income tax. Arthur explains how in the podcast.
• Capital allowances can only be used on non-dwelling property, Arthur explains how to make sure yours fall into that category.
• When purchasing a property, it is important to have the right clauses and agreements in place with the existing owner regarding capital allowances.
• Using capital allowances does not result in a higher capital gain tax bill.
• The property does not necessarily have to have been used for the full year as an SAP to qualify.

BEST MOMENTS

‘Capital allowances make you a smarter investor and more competitive.’

‘If it's somebody's main principal residence, you can't claim capital allowances on that property. ‘

‘When working out your cash flow and your returns, factor in the level of capital allowances.’

´If you already have some SAP properties, you can go back and make a retrospective claim and get back some of the tax.’

VALUABLE RESOURCES

The Serviced Accommodation Property Podcast

https://propertysoldier.co.uk/

Rich Dad, Poor Dad by Robert T Kiyosaki

Serviced Accommodation Success by Kevin Poneskis

CONTACT METHODS FOR GUEST

Email Arthur - [e-mail]

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ABOUT THE HOST

Your host Kevin Poneskis enjoys public speaking, travelling, exercising, and keeping fit. He also enjoys working with a charity called STOLL which provides accommodation and training for homeless veterans.

Kevin was in the British Army serving 24 years, mostly in a Commando unit, and retired at the rank of Regimental Sergeant Major. He left the Army in 2011 and became a full-time property investor. During most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years.

CONTACT METHOD

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