Two in five UK SMEs (39%) that own their own business premises are unaware they can claim a valuable form of tax relief called ‘Capital Allowances’, according to a survey published by Catax, specialists on tax relief.
Capital Allowances are a tax relief available on the ‘intrinsic fabrication’ of a commercial property, such as an office, surgery, warehouse, B&B or other business premises. Qualifying items typically include pipework, cabling, heating, lighting and air conditioning, security and communication systems.
The Catax survey of 500 SME business owners and senior managers also revealed that nearly half (46%) of everyday companies that own their own business premises have never had capital allowances brought to their attention by their accountants.
Since launching, Catax has secured over £102m of Capital Allowances tax relief for over 8,000 clients. In its experience, nine in 10 commercial property-owning businesses have never made a claim and the average net tax benefit to businesses is a significant £46,000.
Catax CEO Mark Tighe said: “There are hundreds of thousands of everyday businesses around the UK, from veterinary, dental and GP practices to nurseries, bars and B&Bs, that are sitting on a potentially significant tax windfall. Capital allowances are obscure at the best of times but they can be extremely lucrative when identified, with the rebate usually received from HMRC in the form of a cash lump sum and ongoing tax relief. In fairness to accountants, this area of taxation is highly specialist so if even they are struggling to get to grips with Capital Allowances then it’s no surprise most companies are completely in the dark.”
Full article here: http://www.smeweb.com/2017/06/12/smes-missing-tax-relief-says-report/