Harris Lipman News

Accountants Highlight Tax Savings for Property Owners

28/11/2007

North London accountants Harris Lipman are urging commercial property owners and investors not to miss out on potentially thousands of pounds in tax savings – and are offering expert help to make sure they do not pay more than necessary.

Owners and investors can cut their tax bills by using capital allowances, which provide tax relief on money spent on new builds, refurbishments, conversions and fit-outs. The cost of certain elements is deducted from income, if the owner is an individual, or profits, if the owner is a business, before tax is calculated, thus reducing the amount they pay. Ongoing relief can be claimable over a lengthy period of time.

However, the rules are complex. There are different allowance “pools” for different items, with plant and machinery a key allowance. Although these are not clearly defined – another complication – this is generally considered to cover items such as carpets, fire alarm systems, generators and sanitary systems.

The government’s pre-Budget report on 9 October also introduced a new “integral fittings” element, part of a long-life assets pool – for items with a useful life of 25 years – from 6 April 2008. Again, this is not defined precisely but it is thought that lifts, escalators, central heating and air conditioning will be included.

Barry Lewis, from Harris Lipman, said: “In our experience, a great many property owners lose thousands of pounds each year as a direct result of capital allowances that are unclaimed or lost because the time limit for a claim has expired.

“To assist our clients who may be affected, we are working with a firm specialising in capital allowances, whose experts will carry out a no obligation forecast of capital allowances that may be available on new buildings, existing property, refurbishment and potential property purchases. Anyone involved in commercial property should make sure they take advantage of the tax savings offered by capital allowances, which are recognised as a valuable incentive to investment and enterprise.”

Form more information contact Harris Lipman on 020 8446 9000

 

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