Are you claiming all the available tax relief on your commercial property?

Accounting, Businesses, CGT, Corporation Tax, Investments, Personal Tax, Property, Uncategorized l

Cartoon-SkylineMost business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?

Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.

The opportunity isn’t just for recent acquisitions of property, so there could be “hidden” tax savings for all businesses with a commercial property to benefit from.

So what needs to happen?

Firstly, what is a commercial property? These can include:

– Hotels & Guesthouses

– Holiday lets

– Restaurants & Pubs

– Camping and Caravan sites

– Retail outlets

– Care Homes

– Garages, factories and offices

Once it has been identified that your property qualifies, a breakdown of the building is needed and this is where most accountants lack the expertise required, as a breakdown of your property’s purchase price and any subsequent improvements is needed into the value of:

– The land and “bricks and mortar”

– The “embedded” fixtures and feature”

– The “moveable” fixtures and features

It is the two types of fixtures and fittings where the tax allowances lie.

Most accountants will identify the moveable fixtures and features when a property is acquired and improved, as these are the easily identified fixtures such as furniture. The embedded fixtures and fittings are by their name suggests embedded into the fabric of the building, and include heating systems, security systems, sanitary ware, electrical systems and kitchens. Within the cost of the building these can be a considerable part of the overall value, and typical proportions are:

– 60% – Caravan Park

– 40% – Hotels

– 25% – Restaurants and Pubs

A detailed and professional valuation is needed to back up your claim, to satisfy HMRC of the accuracy of your calculations.

An actual example is of a hotel acquired for £1.7m. Through a review £452,000 of embedded fixtures and features were identified which otherwise would have gone unclaimed. This gave the owners £452,000 to claim against their trading profits, which could be a tax saving of over £135k versus claiming these costs upon an eventual sale.


Through us you can claim a FREE initial assessment of your property. If embedded fixtures and features of more than £50,000 cannot be identified, there is no cost for the review and survey.

Where more than £50,000 of allowances can be identified, our experts will work with us to make the claims for you with HMRC, with our costs based on a percentage of the allowances identified within your property.

To claim your FREE initial assessment, please contact Martin or Steve on 01904 691141 or