Tax Relief

With the commercial property sector looking set to endure another challenging 12 months, it's important that property owners take full advantage of the tax reliefs that are available to them.

 

One of the most valuable of these reliefs relates to capital allowances. Put simply, this allows businesses, including commercial property owners, to deduct certain costs against their taxable profits.

 

Consultant Surveyors, Januarys, have linked up with Baker Tilly to provide clients with the very best tax advice. Baker Tilly has an enviable track record in this area. In the last three years, their specialist Capital Allowances team has submitted over 100 claims, with an average tax saving of £81k per claim.

 

For new builds, extensions and refurbishments, claims are often made for obvious items such as boilers, air-conditioning and lifts. Claims are commonly missed, however, for the full cost of fixtures integral to the building. These costs are often less apparent and without specialist assistance it can be an expensive and time-consuming exercise to identify them.

 

Therefore, even if your existing advisor has already made a capital allowances claim for you, it may be possible to increase your tax relief.

 

Property owners may also be able to make claims on property they have purchased for which the previous owner has not made, or maximised, claims. In fact, this is an area where Baker Tilly has had a great deal of success for their clients.

 

This tax relief is available to property investors holding property for its rental and/or capital growth potential, and to owner occupiers. It is not available to property developers/dealers or in respect of expenditure on residential properties.

 

In any event, if a client feels that they may be in a position to make a claim it’s important not to delay the process. There is no charge for an initial meeting and any resulting work is then billed on a ‘value added’ basis.   In many cases, the claim also results in a cash repayment from HMRC, which in the current environment is something that most clients find especially welcome!