Tax rebates for Freeholders
94% of Freeholders are paying too much tax
You may have read in BIIBUSINESS magazine that if you are the freeholder of a commercial property, whether it’s a pub, restaurant, hotel, or any other commercial property, then you could be sitting on a large tax rebate and/or reduction in your tax bill due to a little known area of legislation called embedded capital allowances.
What are embedded capital allowances and how much can be claimed?
All commercial properties contain items which are classified by HMRC as intrinsic fabrication i.e. items without which the property cannot carry out a commercial function. These include heating systems, cold water systems, fire and security alarms, kitchens, bathrooms and a whole host of similar fixed or “embedded” items. In all there are almost 2000 different allowable fixtures.
As a benchmark a figure in the region of 20% of the property purchase price is fairly average. So, if you paid £500,000 for your pub, hotel or restaurant then you could have an additional £100,000 in allowances available to you.
A quick case study
Toby and Michelle Bult of the Winyards Gap Inn, Beaminster, Dorset, instructed Taxmole to look into a potential capital allowance claim on their property. They identified more than £60,000 worth of unclaimed allowances in the property and this is what they had to say:
Taxmole have made a huge difference to our financial year. They were efficient and professional in dealing with our capital allowance and we will now save over £16,000 on next year’s tax bill. I would recommend them to anyone who has recently bought or is going to buy a business. At first I thought it was too good be true but they are definitely for real. It is such a good feeling to get something back from the taxman. Brilliant.
Toby and Michelle Bult
Winyards Gap Inn
Who are Taxmole and how can they help?
Taxmole have teamed up with the BII to help freeholders beat the up-coming deadline. At Taxmole, they have a dedicated team of 20 staff doing just this for many owners and we save tens of thousands of pounds every day for owners of commercial property. In fact with over 2000 successful cases under their belt, their experience is unrivalled. Taxmole are a niche tax practice (not general accountants) and will work with your existing accountant to maximise the benefit for you.
In order to make a claim, both you and your property must qualify, in short, here is the criteria.
• Did you pay more than £250k for the property, Qualifying property?
• Are you paying tax or have you paid tax in the last two years?
• Is it a commercial property?
It’s FREE to find out and if you think you qualify then you should complete the attached form and send to Taxmole.
They operate a ‘no saving - no fee policy’