FLOORING contractors can offer a bit of good news to their commercial property customers – that they could be eligible to claim tens of thousands of pounds in capital allowances against premises they own.
Property owners who have recently had floor finishes installed, including carpet and vinyl, can claim them back against tax, using capital allowances, according to Portal Tax, a specialist in the field of capital allowances. It suggests that offsetting commercial property expenditure against profits can help beat the taxman.
The 2012 Finance Bill introduced a transitional period which runs until April 2014. If a commercial property is sold within this period then it can be treated in the same way it would have been previously.
Before April 2012 you could choose when, and whether, you make a capital allowances claim on your commercial property, states Portal Tax.
The owner does not have to make a claim for capital allowances before concluding the transaction, but they must agree to the fixed value requirement within two years, it says.
The next time the property is sold, even if it is the very next day, then the new rules apply and capital allowances must be considered as if it were post April 2014.If the current owner acts now they can claim the full capital allowances back for themselves.
If they do nothing, the future owner of the property may benefit instead.
Portal Tax believes that 96% of businesses that own their own properties, or commercial property owners, could be owed a refund.
On average it says it found among its clients claimable capital allowances ranging from 15-40% of the purchase price of the property although it depends on the building type and usage.
Shaun Murphy, md, Portal Tax; ‘In the current climate owners of commercial property need to save every penny that they can and, at the moment, most are unaware that such valuable capital allowances are waiting to be claimed.’
T: 0845 000 0450
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