RULES are set to change around capital allowances for businesses.
And they could see individuals and businesses lose thousands of pounds in allowances if they don’t act now.
A Blackpool accountancy firm is warning individuals and businesses not to get caught out by the changes, which will reduce the time allowed for retrospective claims from unlimited to just two years.
Bosses at Champions said owners of commercial property often fail to claim the allowances on the “embedded fixtures” on the property when purchased.
And David Hardy (pictured), director at the Blackpool office, said: “At present, only around five per cent of commercial buildings in the UK make these claims to their full potential, meaning significant refunds could be being missed out on.”
“It is possible to carry out not just current year or new build Capital Allowances claims, but retrospective claims for commercial properties.
“So regardless of how long the property is owned, if the claim’s there, it’s yours to make”.
Most retrospective Capital Allowances claims can lead to significant tax refunds or at least provide a way to bank income tax losses and reduce future tax liabilities.
But the rules governing Capital Allowances and retrospective claims are changing and accountants are warning their clients not to miss out
Buried in the small print of the Budget 2011 were HM Revenue and Customs’ suggestion the present time limit for retrospective claims is reduced from ‘unlimited’ down to two years after the property was acquired.
David added: “We would recommend that only properties which cost more than £150,000 when purchased can fiscally benefit.
“However, it is possible to bundle property portfolios where values are less than this and if we find less than £25k of capital on which to claim, there is no fee.”