Office owners, the medical sector and hospitality industry claimed back over £100m in tax relief, according to capital allowances specialists, Catax Solutions.
In the 2012/2013-tax year, office owners across the UK claimed over £52 million in capital allowances – the tax relief available to commercial property owners – providing a welcome financial boost to the property industry.
The hospitality sector also claimed over £24m in tax relief from restaurants and hotels. Nursing homes and medical centres – including doctor and dentist surgeries – also cashed in, with a further £25m at their disposal.
Commercial property owners in London and Manchester are ahead of the curve, with a number vendors marching ahead with their capital allowances claims of over £21m and nearly £20m respectively.
Figures from northern cities including Aberdeen, Liverpool, Manchester and Sheffield highlight that owners in the north are making the most of this lucrative property tax, claiming a total of £38m in the year.
However, on 1 April, the 2012 Finance Bill is implemented. From that moment on, unless all property vendors, their lawyers, or accountants identify and document capital allowances at the point at which commercial properties are bought or sold, they will be lost, forever.
Mark Tighe, managing director, Catax Solutions, said: “Our data suggest that a number of people are starting to sit up and take note of the impending changes. However, with over 98,000 UK commercial property transactions set to take place in the coming year, unless more people sit up and take note of the legislative changes that are now upon us, Britain’s commercial property owners will be haemorrhaging tax relief in the coming financial year — and every year thereafter.
“Unfortunately, the loss of a sizeable tax benefit is only the start. Things are likely to get litigious for any party that oversaw the transaction — whether lawyer, broker, accountant or financial adviser — when their clients discover that they have lost potentially sizeable tax relief. If awareness levels stay as they are then, from a legal standpoint, the next few years could be fractious and represent a considerable financial threat.”
