£2.1bn of commercial property tax reliefs unclaimed
'Lack of awareness' behind unclaimed reliefs, claims commercial property tax specialist
'Lack of awareness' behind unclaimed reliefs, claims commercial property tax specialist
AROUND £2.1bn of tax reliefs related to commercial property transactions have gone unclaimed since the implementation of the Finance Act 2012.
HMRC property statistics show 114,560 non-residential property transactions took place between April 2014 and March 2015.
Of those transactions, property taxation specialist Catax Solutions estimates around 10% would qualify for a capital allowances claim.
According to property magazine Estates Gazette, the average transaction price between April 2014 and Jan 2015 was £4,720,751. Based on that price and the number of qualifying transactions, around £54m worth of properties failed to claim relief, Catax claims.
Around £10.8m of capital allowances were unclaimed, and multiplied by the 20% tax rate, some £2.1bn of reliefs were untapped, the firm said.
Catax managing director Mark Tighe said the “continued lack of awareness” of the range of tax reliefs “comes as no surprise”.
“Gone are the days of allowing a little time to elapse before claiming your tax relief. Property owners are still missing out on the potential for substantial tax rebates – rebates which could be lost in perpetuity if they’re unclaimed at the point of sale.
“With numerous UK businesses looking to grow and purchase their own commercial premises in an improving economy, our advice is simple – make the time to check the capital allowances entitlement as this could make all the difference to your business’ future.”
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