North West accountancy group Champion is advising individuals or businesses owning commercial property to check their eligibility for capital allowances, as the rules are set to change.
According to the firm, the vast majority of businesses which own commercial property miss out on claiming capital allowances on the ‘embedded fixtures’ that were in the property at the time of purchase.
Andrew Hopwood, director at Champion’s Chester office, said: “At present, only around five per cent of those with commercial buildings in the UK make these claims to their full potential, meaning significant tax refunds are being missed out on.
“It is possible to carry out not just current-year or new-build capital allowance claims, but also retrospective claims for commercial properties owned by both individuals and companies. So regardless of how long the property has been owned, if the claim is there, it is yours to make.”
Most retrospective claims can lead to significant tax refunds or provide a way to ‘bank tax losses’ and so reduce future tax liabilities.
However, Mr Hopwood warned the rules governing capital allowances and retrospective claims are changing.
He said: “If you have never claimed on your commercial property, now is the time to consider it. Buried in the small print of the Budget 2011 is HM Revenue & Customs’ suggestion that the present time-limit for retrospective claims is reduced from ‘unlimited’ down to two years after the property was acquired.
“We would recommend that only properties which cost over £150,000 when purchased can fiscally benefit.
“However, it is possible to bundle property portfolios where values are less than this and if we find less than £25k of capital on which to claim, there is no fee”.
For more information contact Mr Hopwood: andrew.hopwood@championgroup.co.uk
