Commercial property owners are missing out on massive tax breaks

Commercial property owners are missing out on massive tax breaks

11:50 AM, 1st February 2011, About 13 years ago

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Capital allowances, particularly on property acquisitions, are often unclaimed or under claimed because of the difficulty in identifying and valuing qualifying expenditure or simply knowing what allowances can be claimed.

It is estimated that more than 90% of Capital Allowances are not fully claimed.

Capital Allowances are a right and not a privilege and are not controversial (i.e. they are not a “scheme”).

Often the tax savings can equate to 10% or more of the purchase price.

There is no time limit on making a claim.

Many of our readers have teamed up with the leading experts who write most of the published works on the subject as non-specialised accountants are unable to carry out the necessary valuations. Fees charged to secure these allowances are based on a small percentage of the tax savings.  Due to the no win no fee approach there is no downside.  Our contacts carry out a free of charge initial review to assess the feasibility of the claim.  This can result in a cash repayment from HM Revenue and/or a reduction in current and future tax bills. 

Eligible buildings include:

  • Offices   
  • Industrial
  • Agricultural
  • Hotels
  • Pubs
  • Restaurants
  • Doctors Surgeries
  • Etc

Eligible Stages:     

  • New build
  • Refurbishments
  • 2nd hand acquisitions

Eligibility Criteria:             

  • Property is classified as commercial
  • Purchase price was a minimum of £200,000
  • The owner, be it an individual, company or
  • Partnership, is a UK taxpayer.

Case Study 1

An individual bought a country pub in Surrey in April and claimed capital allowances on only £10,000 of fixtures and fittings identified in the contract. Our experts surveyed the property and identified a further £145,000 of expenditure qualifying for allowances. Tax savings over time were just under £60,000 and the owner, being self-employed, was able to begin taking the benefit of the relief when he made his next tax payment in July that same year.

Case Study 2

A husband and wife owned 2 nursing homes, costing circa £1m and had never claimed capital allowances, other than on obvious items such as furniture and equipment. Our experts surveyed the properties and prepared detailed claims covering, for example, sanitary ware, heating and electrics. The outcome was a tax saving of around £100,000.

If you would like to learn more please email Cliff Verrill;

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