Tax Awareness is Essential
It has emerged that a significant proportion of businesses acquiring commercial properties miss out on generous tax breaks. This is according to experts who pinpoint a lack of knowledge of the tax system as the root factor.
Many things can be claimed for, from machinery to plant fixtures inside properties such as suspended ceilings, heating systems and lifts.
However, both Portal Tax Claims and Rift UK have said that most clients of theirs are unaware of which they have rights to.
Jeanette Edminston, Portal Tax Claims’ technical manager, stated that most businesses in reality have the option and power to claim at least 25 percent of their property’s price as capital allowance. Millions of pounds exist in unclaimed tax relief according to Jeanette.
“The definition of items that are claimable encompasses a far broader range of things than most think,” she said. “Businesses can often make a real difference to their margins”.
Jeanette’s words highlight a worrying reality. In an accounting year and on plant and machinery, businesses have the ability to claim 100 percent relief on the first £25,000 of capital expenditure.
After this, 18 percent of plant and machinery can be claimed. Such machinery include slurry storage and silage pits, grain dryers, conveyors, stand-alone fans and heaters, fire protection systems, certain poultry equipment amongst other things.
All the while, allowances at 8 percent can be claims as vital features which constitute as part of the building. Such could be internal pipework, lighting, switches, wiring and cubicles or even kitchen and bathroom fittings.