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Commercial property owners sitting on thousands of unclaimed tax relief

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Commercial property owners sitting on thousands of unclaimed tax relief

New research by tax adviser STax has revealed that millions of commercial property investors could be entitled to tax relief that they don't know about, often equating to thousands of pounds.

The data highlighted that 96 per cent of respondents were missing out on capital allowances; tax relief on items bought for use within the business. This could be anything from tools, office equipment, fixtures, office features, a car, machinery, or even charity donations.

STax founder Andrew Stanley suggested that complicated rules regarding capital allowances means they will often be assessed incorrectly and many business owners will miss out. According to Investors Chronicle, Mr Stanley said: “If you can accurately assess the items that qualify for the tax relief and processing an effective claim, it will result in a substantial write-off against the profits of your business, giving you a lower tax charge – and sometimes a cash rebate for previous years."

As part of capital allowance rules, one owner can receive tax relief on a building's lifetime, but they are only available to sole traders, partnerships, self-employed individuals, and any company liable for Corporation Tax. You cannot claim any relief on any items that your business will buy or sell as part of it's trade. These items have to instead be included in your expenses when trading profits are calculated.

For property owners who feel like they may be entitled to claim any capital allowances, they will have until April 2014 to do so. This deadline has been put in place following legislative changes enforced by the 2012 Finance Bill. Therefore, it is generally advised that you act as soon as you can, or you may end up losing out on potentially thousands of pounds.


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