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UK's commercial property owners 'lose out on £100m in tax relief'

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UK's commercial property owners 'lose out on £100m in tax relief'

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Published by Max Salsbury for 24dash.com in Central Government and also in Regulation

UK's commercial property owners 'lose out on 100m in tax relief' UK's commercial property owners 'lose out on 100m in tax relief'

Image: Warehouse via Shutterstock

In sad news, it seems that the UK's commercial property owners have recently missed out on £100 million in tax relief, a 'capital allowances specialist' has claimed.

Catax Solutions' analysis of HRMC's monthly property transaction report found that over £84m has been lost in the first three months since this April's implementation of the 2012 Finance Bill, taking the figure to approximately £100m to date in Catax's view.

Catax says that it has identified that approximately 3,000 commercial properties sold in the first three months were eligible for tax relief - but only 1% have had any relief claimed against them.

The government's regulation changes implemented on 1 April 2014 mean that any individual or business that owns a commercial property has to identify the capital allowances in their commercial property at the point of being bought or sold, or they could be lost completely.

Catax claims the change is significant to thousands of businesses across the UK with the figures for April, May and June showing that approximately £28m, £26m and £30m was lost in tax relief in each month respectively - indicating a potential annual loss of more than £330m.

A morbid Mark Tighe, managing director at Catax Solutions, said: "Our worst fears are being realised. We have watched in frustration as Britain's commercial property owners throw away an absurd amount of money in tax relief month after month due to a lack of understanding and knowledge of capital allowances.

“Unfortunately, the more intricate details of the Bill are so complex, it’s not surprising many of the parties involved in commercial property transactions struggle to get their heads around capital allowances and the changes introduced. As a result, the amount of tax relief lost will grow with each passing quarter.

“We also have grave concerns that this is just the tip of an iceberg that could quickly go into meltdown, leading to accusations of negligence followed by complex and protracted legal proceedings as more and more property owners discover that they could be missing out.”

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