Did you know...
Under current UK legislation Commercial Property owners are allowed to claim back capital allowance tax relief against the plant & machinery (aka fixtures and fittings) element of their property, irrespective of when they purchased the property.
96% of all Commercial property owners have yet to use their full capital allowance tax relief.
The UK government is changing the legislation; as of April next year any commercial property owners who brought a property pre April 2010 may lose the right to claim forever (see note below **)
The qualification criteria for potential beneficiaries is as follows:
1. Did I/we pay more than £250,000 for the building if an office/hotel/care home or £400,000 if retail/light industrial, etc?
2. Am I/are we a UK tax paying entity?
3. Do I/we own the building outright, part financed or with a leasehold with at least 50 years remaining, supported by a peppercorn rental agreement?
Changes in legislation have come about after a government consultation this year:
1. At this point in time, any commercial owner is entitled to make this claim regardless of the year of purchase however it is looking very likely that the window for making such a claim is going to be reduced to two years from 5th of April 2012. This will mean that any owners who acquired a property pre April 2010 will lose their entitlement altogether.
2. The second key change is that all disposers will face a legal requirement to assess and deliver a report to HMRC (at their own expense) confirming the current position relating to the Capital Allowances on all of the qualifying assets, classified under the fixed plant and machinery legislation (including superstructure) within their property. Prospective disposers will have to undertake and complete this process BEFORE being able to complete the transaction.
How IRUN can help...
Commercial Property owners will have a number of options available to them and so it is vital to take professional advice as soon as possible... BEFORE APRIL 2012!
Please contact us on 01865 920003 NOW if you feel you may qualify to take advantage of this current legislation before the potential change in April 2012.