Local Community News

BUSINESSES MISSING OUT ON TAX REFUND

taxAccording to latest analysis by Portal Tax, owners of an estimated 500 commercial properties in Isle of Wight could be missing out on £18.5 million in tax rebates for unclaimed capital allowances on fixtures and fittings.* Nationally, the total unclaimed allowances have now reached £8.8 billion.

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’s 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.

Top 5 items on which tax has been claimed back:

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1 – Ironmongery, sanitaryware and plumbing
2 – Power, data and light fittings
3 – Floor coverings
4 – Signage and wall finishes
5 – Fire, communication, securty and heating/colling systems

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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