Commercial property owners could be missing a trick if they fail to pick up on tax breaks on offer, international accountants Mazars in Birmingham have warned.
Capital allowances on a new build, refurbishment or acquisition of a commercial building can be worth ten per cent of its value, according to experts Lindsay Pentelow and Ray Chidell.
Mr Pentelow, the partner who leads Mazars’ tax business across Birmingham, Milton Keynes, Nottingham and Gloucester, and Mr Chidell, a director for the firm’s Capital Allowances Advisory Service, have together written two books on how best to take advantage while not falling foul of the complexities.
“Capital Allowances 2013-14” and the “A-Z of Plant & Machinery” are published by Claritax Books.
Mr Pentelow said: “Tax breaks for owners of commercial properties are complex and subject to constant change. All governments tamper with the rates at which tax breaks are given through the system of capital allowances.
“But more radical changes – requiring greater care and attention – were introduced in last year’s Finance Act. The result is that tax planning for those occupying or owning commercial properties has been turned completely on its head. The entire value of the allowances may be lost if owners of commercial properties fail to jump through the right hoops.”
Mr Chidell added: “The changes have a huge impact on those who are buying or selling properties, opening up new opportunities for those who are well informed, but also creating pitfalls that can be enormously expensive.
“Owners need to consult their tax advisers in order to get to grips with the rules especially now that more deals are being done and optimism is returning to the market.”
Some of the changes are already in place; others come into being next April.
The “A-Z of Plant & Machinery” explains the correct tax treatment of more than 240 types of common business expenditure, from lighting to lift shafts, panelling to overhead costs.
The complementary “Capital Allowances 2013-14” contains in-depth coverage of the rules that apply when seeking tax breaks including new rules for fixtures and annual investment allowances.
The aim is to alert business owners to the possibilities and allow them to check whether significant claims may have been missed.
Mazars has a large tax advisory practice, including a core team of tax specialists and surveyors providing capital allowance advisory services to clients involved in property and infrastructure projects. The firm acts for investors, developers, finance providers, owners and occupiers.