Firms ‘missing out on rebate windfall’

Shaun Murphy, managing director of Portal Tax
Shaun Murphy, managing director of Portal Tax
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Close to 400 commercial properties in Blackpool could be missing out on millions of pounds in tax rebates for unclaimed capital allowances on fixtures and fittings, it was claimed today.

According to latest analysis by Portal Tax, owners of an estimated 390 commercial properties in the resort could be missing out on £13.8 m.

Nationally, the total unclaimed allowances have now reached £8.8bn, based on figures supplied by the Office for National Statistics.

Portal Tax says capital allowances are an often overlooked tax relief which applies to fixtures and fittings that do not form part of the fabric of a building.

Allowances can be claimed on a wide range of qualifying items that can include plumbing, electrics, carpet, air conditioning, lifts, fire safety or any other improvements that are not deemed part of the physical construction of the building.

They are often overlooked as they don’t normally form part of a business’ annual financial accounting.

Portal Tax’s analysis suggests that businesses who submitted capital allowances claims to HMRC in 2012 received an average tax relief payout in excess of £36,000.

Shaun Murphy, managing director, Portal Tax, said: “Given the economic climate, owners of commercial property need to save every penny that they can and most are unaware that they can claim significant relief for capital allowances on their fixtures and fittings. Any property owner that has not made a claim should contact their accountant or discuss it with a specialist business, especially as the tax rules are changing and businesses should ideally address the issue this year.”

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