Written by Richard Farnworth

£2.1 billion of capital allowances tax relief reported unclaimed ' make sure you don't miss out

Recent reports have suggested that a ‘lack of awarenessâ? has led to around £2.1 billion in commercial property tax reliefs going unclaimed.

Since the implementation of new legislation in 2014, it appears that a significant amount of capital allowances tax relief has not been claimed.

HMRC property statistics show that 114,560 non-residential property transactions took place between April 2014 and March 2015. Of those transactions, it has been estimated that 10% would qualify for a capital allowances claim.

But how can you avoid missing out on this valuable form of tax relief?

What are capital allowances?

Capital allowances can be claimed on all the fixtures within a specific commercial property. As the fixtures and equipment form a considerable proportion of the value of the property, they can be a significant source of tax relief.

Despite this, many property owners are still failing to take advantage of these allowances.

Can non taxpayers benefit?

If property owners do not pay any UK tax, capital allowances cannot be claimed. This will usually include charities, local authorities and pension funds.

Despite this, it is still important to carry out research into the future situation regarding capital allowances as this information will most likely be needed for any future sale.

The benefits of being prepared

As in most cases when it comes to commercial property, carrying out prior research and being prepared is key.

If you are a potential buyer, we would always advise finding out about the seller’s capital allowances position. Doing this as soon as possible can maintain the capacity to make claims.

Richard Farnworth, Partner at Commercial Matters, a division of Farnworth Rose solicitors commented: ‘It is important to make all the necessary checks when purchasing a commercial property. The figures show that a significant amount of money could be missed without this.

‘Capital allowances claims can be a complex issue but seeking the right advice now can avoid a number of future complications.

‘Here at Commercial Matters, we offer expert advice on all aspects of the commercial purchase process. By seeking specialist legal advice you can ensure that all the necessary procedures are followed throughout your commercial property purchase.â?

Contact Commercial Matters for expert legal advice on your commercial property

We have a dedicated team waiting to help you with all aspects of your commercial property purchase.

To discuss your matter with a specialist solicitor today, call us on 01282 695 400, or book your free initial consultation by completing our quick online contact form.