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£130k Windfall for Commercial Property Owners

Posted on: 30/04/2018

Would you say that £130,000 qualifies as a windfall? Well that’s the estimated tax relief the owners’ of two commercial properties will receive for unclaimed capital allowances relief.

So reports Rob Sowden of Bournemouth-based consultancy Business Cash Enabler. 

“One of the properties was purchased six years ago, yet they’d been sitting on a goldmine all that time and hadn’t been made aware of it.

“An estimated 80-90% of commercial property owners in the UK have not claimed their full entitlement, due to being unaware of how this can benefit them, or due to various wrong assumptions.

“Regardless of when a commercial property was purchased, the freeholder or whoever paid a capital sum for a long-term leasehold, may well be eligible.  It’s not uncommon for the owner to be able to claim in the range of 15-45% of the purchase price for tax relief, at whatever tax rate they are liable to. Likewise, if a significant sum was paid for a refit, refurbishment or extension, there may be unclaimed value too. This can be received as rebates from the prior two tax years, plus a writing down allowance year-on-year until it is used up, reducing tax liability for several years to come.  In this instance the properties were owned equally in joint names by the business owner and his wife, both of whom were higher rate taxpayers, entitling them to £65k rebate/relief each. These property owners’ may well have wondered how receiving that relief many years ago could have made a difference to their business or personal cash flow. 

“This applies to any commercial property – care home, car showroom, offices, warehouse, industrial unit, factory, hotel, retail, veterinary/dental/health surgery, etc. As long as the owner/s is/are taxpaying, there could be a windfall waiting to blow their way.”

About Business Cash Enabler

Dorset Chamber member Business Cash Enabler provides a free eligibility checking service and works with a specialist provider that assigns a RICS surveyor to identify and value all qualifying items that are embedded within the building structure.  There are no abortive costs involved, any fees are simply a percentage of the qualifying expenditure identified.  A full report is provided to the client and their accountant for submission to HMRC for the rebates and/or relief.

For more info or a free eligibility check out FAQ on www.businesscashenabler.co.uk/faq/




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