9 Out of 10 Commercial Property Owners Due Sizeable Tax Claims

A significant tax relief opportunity awaits commercial property owners, promising to lower future tax liabilities or even generate tax refunds for the past two years.

Surprisingly, over £1 billion worth of capital allowance claims remain unclaimed.

Identifying these qualifying assets within a commercial property often requires a specialist team of tax experts and surveyors to uncover these missed opportunities, ensuring substantial tax refunds and future tax credits for years to come.

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(Read Time: Approx. 4 minutes)

Topics Discussed:

• Discovering claimable items within commercial properties for tax relief.
• Understanding eligibility and the process of claiming Capital Allowances.

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What Are Capital Allowances?

By leveraging various tax-free allowances, a higher-rate taxpayer can effectively earn up to £26,070 tax-free annually.

Let’s take a brief look at some of these allowances and schemes created by HMRC which you can take advantage of to increase the amount of money you won’t be taxed on.

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Who Can Claim Capital Allowances?

Commercial property owners, whether they are sole traders, partnerships, or companies, can claim up to 40% of the acquisition cost of the property in Capital Allowances.

One of the most advantageous aspects of Capital Allowances is that there is no time constraint for claiming them on historic expenditures, as long as the property is still owned.

This means that property owners who have held their properties for many years can still claim allowances for qualifying assets.

For example, if a property was acquired in the 1980s and has not been sold, the owner may still be eligible to claim significant tax claims for the qualifying assets within the property.

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Maximising Capital Allowance Tax Claims

Different types of properties have varying potential for Capital Allowances.

For example:

• Industrial Units: 10% – 30%

• Care Homes: 25% – 50%

• Retail Units: 10% – 30%

• Offices: 15% – 35%

• Hotels and B&Bs: 20% – 45%

• Pubs and Restaurants: 10% – 40%

• Doctors/Vets: 15% – 35%

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The Hidden Potential of Capital Allowances

Capital Allowances are a powerful yet often underutilised tool for commercial property owners.

These allowances can provide significant tax relief by allowing property owners to deduct the cost of certain qualifying assets from their taxable income.

This deduction can lead to substantial tax refunds and future tax savings, making it an essential aspect of tax planning for commercial property investments.

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Identifying Qualifying Assets

The process of identifying qualifying assets within a commercial property can be complex and requires a detailed understanding of both tax legislation and the specifics of the property itself.

Some common qualifying assets include:

• Air Conditioning Systems: These systems are essential for maintaining a comfortable environment in commercial properties, and their costs can be significant.

• Heating and Ventilation Systems: Similar to air conditioning, these systems are crucial for property operation and can be claimed.

• Security Systems: Modern security systems, including alarms and surveillance equipment, are vital for protecting property and assets.

• Lifts and Elevators: Integral to multi-storey buildings, the installation and maintenance of lifts are considerable expenses.

• Electrical Systems: Comprehensive electrical installations, including lighting and power systems, are substantial costs that qualify for Capital Allowances.

• Fitted Furniture: Custom-built furniture and fixtures that are permanently attached to the property can also be included.

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The Due Diligence Process

Claiming Capital Allowances requires a thorough due diligence process to ensure compliance with HMRC regulations and to maximise the claim’s value.

 At Tax Expert, our process includes:

• Initial Consultation: We begin with a free consultation to assess the potential for Capital Allowances tax claims.

• Property Review and Assessment: Our team conducts a detailed review of the property, identifying all potential qualifying assets.

• Detailed Analysis: Tax experts and RICS surveyors perform an in-depth analysis to compile a comprehensive report of the findings.

• Handling HMRC Enquiries: We manage all correspondence with HMRC, ensuring that any enquiries are promptly addressed and resolved.

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Misconceptions and the Need for Specialists

Many property owners may be unaware of their eligibility for Capital Allowances due to common misconceptions.

For instance, some believe there are strict time limits on tax claims or that their property does not contain qualifying assets.

Additionally, maximising a Capital Allowances claim requires specialised knowledge that goes beyond typical tax advisory services.

This is why having a team of specialists, like those at Tax Expert, is crucial for ensuring that all potential allowances are identified and claimed.

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Summary

Our team, led by Ilyas Patel, specialises in optimising capital allowance credit claims.

With over 40 years of experience in specialist taxation, we ensure:

• No hidden costs, offering 100% transparency.

• A 100% success rate on claims.

• Fees only payable upon successful claim acceptance by HMRC.

With the right expertise and guidance, you can uncover and claim these valuable allowances, reducing your tax liabilities significantly.

Send us an email today at info@taxexpert.co.uk, or fill out our form here, to start your claim and include all relevant information.

For any questions, please give us a call at 01772 788200, or messahatsApp at 07787 010190.

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Kind regards,

Ilyas Patel