There was a lot to celebrate at the Arctic Spas headquarters recently as owner David Martin was able to claim back thousands of pounds in tax relief on his Arctic Spas showroom.
These tax refunds are also known as Capital Allowances, which are a form of tax relief available to UK tax paying commercial property owners, such as David. These allowances were claimed on items that were considered part of the building, including air conditioning, heating systems, toilet facilities, kitchen fittings and more.
Much to the Kidderminster based owner’s surprise, he received a substantial amount of tax refunds:
“I couldn’t believe that my accountant didn’t do this, and when I found out, I was able to claim back a substantial amount of tax benefits. It turned out that all I needed was a specialist team to identify certain embedded items.”
Similarly to David, many commercial property owners believe that their accountant will deal with Capital Allowance claims, however this is often not the case because accountants typically do not have the specialist team in place that are required to identify allowances, which is why commercial property owners need to employ Capital Allowance specialists to process these claims for them.
Allan Mannion, Business Development Director at Capital Allowance specialists Headley Meredith Associates explains:
“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it.
In the case of commercial property, you need a specialist team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by an Embedded Capital Allowance expert.”
Many more commercial property owners can claim for tax allowances, just as David did. David and his team are certainly reaping the rewards!
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