Are you an owner of a furnished holiday let, pub, shop, office or any form of commercial property? You should take note of the relief this can provide in your business. There is an ideal tax relief available for you.
The good news is it does not matter if you purchased this building this last year or owned it for many years, this would be available to you – provided of course it has not been claimed before. You must own the property so it would not suit every investor whom has options set up. This allowance covers all commercial properties across your portfolio. This may result in a large tax rebate available for you to benefit from. The other good news, is this will not matter how long you have owned the property.
It does not matter what legal entity you have purchased the property in, limited company, partnership or sole/ joint names. It does not also matter how long you have owned this, it will not go away over time. The relied is a figure that you will either apply in one lump sum or against different years just like depreciation works in your accounts. The relief will depend on how much you would have had in the property. We would establish the value of the tax relief, then put this all in one claim and establish the value to you. It is worth a substantial part.
The allowances are available to anyone incurring with capital spending on either the original purchase value or later subsequent spending. This can be in any form of commercial property – either building or buying a furnished holiday let, service accommodation business, hotel, pub, shop, warehouse etc. There will be anything in the property that is technically not the bricks and motor, so includes heating systems, electrical installations, plumbing systems. The claim will then be computed from a survey of the property. The claim will include these spends, work out the allowances on specific items and then you deduct certain purchases and a percentage of these costs are then taken off the profits and hey presto, your tax bill is lower.
It is very often missed my most accountants, indeed, most work as bookkeeper what papers are passing their desks (or screens) and do not look for the full potential to be made. It would explain why less than 7% of situations actually made a claim – speak to an advisor to ensure you get your commercial property claim in on time. There are ways in which you can claim in the situations in the past but will need to ensure you get specialist advice to cover these situations.
We have the knowhow
From the years 2008 our specialist property firm has focussed on delivering tax surveys all over the globe to ensure you get the relief possible. Limited in some cases in depending on how you have claimed the cost in your records. We have prepared and been successful to claim a number of properties for individuals and companies. We can also ensure you streamline your processes to ensure your claims are easily laid out, accepted with minimum of fuss. We will base out claims on actual inspections and where possible, reduced claims based on the allowances we know will be allowed.
The biggest issues is often most common failure is in working out the integrated features within the property which will include all the plant and machinery within the property. These will include air conditioning, heating systems, plumbing systems, electrical cabling right down to the signs. Plant and machinery is part of the integrated fabrication of a commercial building and includes heating and cooling systems, emergency lighting, security systems and sanitary ware etc. Typically these costs are not segregated from the building cost and are coded to freehold additions with no allowances claimed.
There is no time limit for this claim, but this may be appealing to be claimed in one year.
We do not charge if this does not benefit. We will be happily review your situation and ensure that the claim is in our best interest. We will ensure our charges are based on a fixed part for the tax survey, then it will be a share on what tax you are able to claim back in the first year. If you do not gain in the first year, you will still get further benefit over the time.
If you think there is the possibility for a claim on properties owned by you personally or by your company and would like to know more about this, we would be more than happy to discuss this in more depth with you.
For more tax advice and assistance with accounts and to speak to Colin Davison, Managing Partner at Cranleys. 01256 830000