Home Recent Landlord News Are you missing out on tax savings on your commercial property?

Are you missing out on tax savings on your commercial property?

A purchase of second-hand commercial property allows the new owner to claim tax relief on certain parts of the building.  Do you own commercial property in your business or as a landlord?

Have you maximised the tax relief on that property?

I am guessing your answer to the second question is that your accountant deals with that; however unless your accountant specialises in this area it is unlikely they could give you comprehensive advice on this.

Prior to a rule change in April 2014, a purchase of second-hand commercial property allowed the new owner to claim tax relief on certain parts of the building. Since April 2014 this is more complex and will be the subject of a future article.

However, many people or companies will own commercial properties bought prior to April 2014 and will still own them. As long as you are an income taxpayer or corporation taxpayer then you may qualify.

The problem is that when a commercial property is acquired, second-hand, usually the only documentation the accountant sees is the solicitor’s paperwork showing costs, legal fees and Stamp Duty Land Tax. Nowhere is there a breakdown of how that purchase price is made up, and here lies the problem.

Certain parts of the building will qualify for tax relief as Capital Allowances including:

  • Heating
  • Lighting
  • Electrics
  • Air conditioning
  • Hot and cold water distribution

It is possible to claim tax relief now, on a property bought anytime in the past, by preparing a Capital Allowances report and submitting it to HMRC. This is where Catax comes in. This is our area of expertise and we employ a specialist team who will place values on the qualifying items in order to claim tax relief now.

Commercial properties include hotels, restaurants, caravan parks, warehouses, factories, offices, shops, industrial parks, dental, GP and veterinary practices and furnished holiday lets; all of which can be found in abundance in Cumbria.

Some recent examples of our claims include:

  • Office in Carlisle. Cost £305,000. Qualifying costs identified £45,000
  • Industrial units in Kendal. Cost £437,000. Qualifying costs identified £37,000
  • Hotel in Whitehaven. Cost £242,000. Qualifying costs identified £27,000.
  • Our average client benefit is £46,000.

BLA Scotland

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