Retailers Could Claim £Thousands in Tax Using Capital Allowances - Before April 2014

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13 September 2013 | Updated 01 January 1970

Portal Tax, a specialist in the field of capital allowances, is advising retailers that both current and previous installations can be claimed against tax, using capital allowances but that they should be done before April 2014.

Not just larger businesses but also smaller retail businesses are being told that they could claim back tens of thousands of pounds using capital allowances.

Shaun Murphy (pictured), MD of Portal Tax says: “In the current climate retailers – in whatever size of business - need to save every penny that they can and at the moment, most are unaware that such valuable capital allowances are waiting to be claimed. Literally hundreds of billions of pounds are due to retail business owners but most lack the necessary expertise to make the claim, which can be a complicated process.”

The 2012 Finance Bill introduced a transitional period which runs until April 2014. If a commercial property is sold within this period then it can be treated in the same way it would have been previously. Before April 2012 you could choose when and whether, you made a capital allowances claim on your business. The owner does not have to make a claim for capital allowances before he/she concludes the transaction but they will have to agree to the fixed value requirement within two years. The next time the property is sold, even if it is the very next day, then the new rules apply and capital allowances must be considered as if it were post April 2014.

If current owners act now they can claim the full capital allowances back for themselves. If they do nothing, a future owner of the property may benefit instead.

Portal Tax has helped businesses to maximise any capital allowance claims on their commercial property - on average, £105,000 for each business in outstanding capital allowance for items ranging from fire alarm systems, to heating, to air conditioning.

Data compiled by Portal Tax has revealed the top ten items by volume on which tax has been claimed back – averaging £105,000.

1 Ironmongery (including closers, latches, locks, etc)

2 Sanitaryware (including WCs, basins, second fix pipework etc.)

3 Power, Data and Lighting Fittings (including sockets, switches etc.)

4 Floor Finishes (including carpet, vinyl sheet etc.)

5 Hot and Cold Water Equipment (including pipework, tanks etc.)

6 Signage

7 Wall Finishes (such as ceramic tile splashbacks)

8 Fire, Communication and Security Systems (such as alarms, cameras, other equipment)

9 Heating, Cooling and Ventilation systems (including air conditioning, radiators, boilers etc.)

10 Workplace Lighting (usage dependent)

Article written by ThisWeekinFM | Published 13 September 2013

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