Are you sitting on cash trapped within your business property?

Haines Watts is calling on commercial property owners to review their property portfolios to unlock the true value of capital allowances. Here, David Holroyd, tax partner, explains more.

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A lot of noise has surrounded capital allowances over the course of the past 12 months, and yet it still remains one of the most under-explored and invaluable forms of tax relief on offer. Especially for commercial property owners, who are often sitting on thousands of pounds worth of unclaimed tax savings trapped within their properties.

Capital allowances in the UK have never been more generous or more complicated than they are now. And while most accountants and advisors will be aware of the relief in some capacity, it takes a completely different exercise and skillset to be able to maximise the value of claims in respect of property expenditure – especially where properties are acquired or refurbished.

Has the value of your claim been maximised?

Whether it’s refurbishing, building or extending, capital allowances are available to taxpayers incurring capital expenditure on commercial property. With the rate of relief stretching up to 150 per cent of the expenditure incurred, the relief can act as a real cashflow lifeline. But in the current economic climate, such investments may be out of the question for many.

This is when making a historic claim can go a long way. From air conditioning and water systems to lighting and power installations, commercial property owners can make retrospective claims for assets and fixtures which form part of the property, and which are often overlooked.

Often, when reviewing historic claims, further value from the property is uncovered too. Lack of awareness, thinking all allowances have already been claimed for, and not being tax paying at the time of expenditure are all reasons why a claim might not have been fully explored in the past.

The value of working with a capital allowance expert

While capital allowances ought to be an unmissable form of relief for eligible property owners, it requires in-depth knowledge and an expert eye to truly maximise the value of a claim. If a survey has never been carried out, it is highly unlikely all allowances have been claimed. The safest route is to talk to an expert about your property. They will be able to fully survey your property, assets and land, understand the scope of your claim and capture costs that would likely go otherwise unnoticed

Haines Watts

David Holroyd heads up Haines Watts’ multidisciplinary capital allowances team, and has more than 35 years’ experience of providing clients with advice in capital allowance. The firm’s team has specialist inhouse chartered surveying and tax expertise, with its vast experience of analysing property expenditure, both new and retrospectively, helping businesses and individuals realise the true value of capital allowances.

Haines Watts is a leading advisor to owner managed businesses across the region and the UK. For more information, contact the firm’s Newcastle office on 0191 2699 960 or email [email protected]