Are you turning your back on tax saving opportunities?

Have you spent money on buying or improving a commercial property or furnished holiday let?

If so, you could be eligible for up to 40% tax relief. The current UK tax system does not allow you to claim a tax deduction for this expenditure, but you could be entitled to capital allowance tax relief.

Over 50% of commercial property owners have not made a capital allowances claim. Are you one of them? With up to 40% of a building being eligible for tax relief, this is the time to talk to us and ask if you are eligible to claim. We have a team of capital allowance specialists, including a RICS qualified surveyor who will take the burden away so you can focus on your business.

It does not matter how long you have owned the property for either, whether privately or as a limited company. There is no limit on retrospective claims. So it may be possible to make a claim as long as the items are still in use for the purpose of trade.

What can I claim for?

Capital allowances can no longer be claimed on the buildings themselves, but can be claimed on the internal fixtures, or items of plant and machinery, that perform an active function within the building that you own.

These costs are not usually segregated from the building cost, being coded to freehold additions with no allowances claimed.

This is where the opportunity lies.

  • Plumbing, heating, powered ventilation, external solar shading
  • Lifts, but not the lift shaft
  • Roller shutter door machinery, but not the door
  • Decoration in pubs and restaurants that give ambience
  • Heating and cooling systems
  • Emergency lighting and security systems
  • Sanitary fittings

When to seek expert advice

  • When you build, extend or refurbish a commercial property – most qualifying items get lost in the documentation, so you need help to identify them and make a claim.
  • If you buy a commercial property straight from the developer – because you only pay a price for the building, the individual parts may not be evident and, with claims available of up to 40%, it does pay to ask an expert.
  • If you already have a property portfolio which is several years old, provided you still own and use the property, it’s possible to look back indefinitely.

Average claims for capital allowances

The good news is that it’s not too late to consider a claim – it’s certainly a must if you are about to buy a property as you can fully maximise the savings potential at this stage.

These tax savings often run into tens of thousands of pounds, as you can see from practical examples that have been undertaken by our specialists.

TYPE

% OF EXPENDITURE

Hotels15-40
Care Homes20-40
Offices12-40
Retail3-25
Industrial5-25
Furnished Holiday Lets10-25

Examples of fixtures claims


Business Type

Spend

Tax Relief

Crematorium£443k
allowances on new build
£84k
corporation tax savings
Industrial Unit£145k
allowances on property acquired and improved
£27k
corporation tax saving
Warehouse Unit£302k
allowances on new build
£120k
personal tax savings

If you think that you may be eligible, please get in touch for a no obligation conversation.