CAPITAL ALLOWANCE: MAKING THE MOST OF TAX RELIEF

Do you own a commercial property? If so, you could be missing out on tax relief

Every year property owners waste thousands of pounds in tax relief on lost or under claimed Capital Allowances because they do not take account of the tax reliefs that may be hidden within the cost of the building.

At the moment it is possible to revisit these missed opportunities and make claims in subsequent years irrespective of how long ago the property was purchased.

However, the Government has now commenced a consultation to consider how it proposes introducing a restriction on how far back a property owner may go back to revisit claims.

This consultation period closes at the end of August and we expect changes to be enacted in the Finance Act 2012. It is likely that this will prevent claims on expenditure that is not incurred within the new time limits for mandatory pooling. This may result in the loss of an entitlement to claim capital allowances where a current entitlement exists.

With this limited window of opportunity available, it is vital that you consider whether you have claimed everything you can on property acquisitions, extensions, new builds and refurbishments, whether it is owned for leasing or for owner occupation.

If you don’t do it now you may giving away thousands of pounds to HMRC.

For more information on capital allowances please contact Steve Crompton on steve.crompton@rsmtenon.com

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