A Shropshire based business owner had a lot to celebrate recently as they were able to claim back thousands of pounds in capital allowances on their commercial property.
The business owner, who cannot be named for private taxation matters, was able to make a capital allowance claim based upon items within their building. These items are considered part of the property that are eligible for tax relief, and typically include items such as security systems, air conditioning, kitchen fittings and more. These items can hold thousands of pounds in tax relief.
The business owner expressed their delight in claiming:
“Upon hearing of capital allowances, I just expected it to be another tax loophole. However, once I spoke to capital allowance experts who explained how as a commercial property owner it was my right to claim, I discovered that I had been sitting on thousands of pounds in tax relief.
Claiming was so easy as the specialists took care of everything for me, from surveying the property to submitting the report to HMRC, I barely had to do anything!”
Many commercial property owners are now employing specialists to make a claim on their behalf because their accountant are unlikely to have a specialist knowledge of the HMRC guidelines that is required, as well as a team in place who are qualified to process these claims.
Many other commercial property owners in Shropshire could have the potential to make a capital allowance claim, and could be unaware that they may be sitting on thousands of pounds in tax relief.
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 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 a capital allowance expert.”
The amount that can be claimed would surprise some, for example, the typical claim would be around 25% of the original purchase value of the property, which represents £125k of allowances in a £500k property, translating as £50k in direct tax refunds.