London property developer identifies £4m of unclaimed capital allowances with help of experts.
A London based Property Developer had a lot to celebrate recently as they were able to claim back millions of pounds in capital allowances on their commercial property.
The Developer, who asked not to be named to retain their privacy, 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.
They expressed their delight in claiming:
“Upon hearing of capital allowances, I just expected it to be another tax loophole. However, once I spoke to HMA Tax, who explained how as a commercial property owner it was my right to claim, I discovered that I had been sitting on all this tax relief.
Claiming was 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!”
Commercial property owners are now employing specialists to make a claim on their behalf because their Accountants are unlikely to have the specialist knowledge of the relevant HMRC guidelines, as well as a team in place who are qualified to process these claims.
Many commercial property owners in London are unaware that they are able to make a capital allowance claim and are currently sitting on millions of pounds of tax relief.
Andy Milnes, Senior Claims Specialist at capital allowance specialists HMA Tax explains:
“One of the strangest aspects of this subject is that the purchase of a commercial property is usually an individual or business owners greatest expense, yet they are rarely aware of the associated tax relief.
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 price of the property, which represents £125k of allowances in a £500k property, translating to £50k in direct tax refunds.
If you own commercial property it is likely that we can assist you in making a claim. Please call James Telling on 01384 904090 or email james@hma.tax for more information.
