Professional Services News

Three in five South West SMEs unaware of key tax relief

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Written by: Hannah Baker | Posted 09 October 2017 14:36

 Three in five South West SMEs unaware of key tax relief

Fifty-seven per cent of businesses in the South West that own their premises are unaware they can claim tax relief, according to a survey published today.

Capital allowances are a type of tax relief available on commercial property, such as an office, surgery, warehouse, hotel or other business premises.

The report by tax business Catax found that 60 per cent of companies that own their own business premises in the region have never had capital allowances brought to their attention by their accountants.

Just one in 10 local businesses have applied for capital allowances tax relief in the past.

Mark Tighe, chief executive of Catax, commented: “We know that thousands of businesses in the South West, from veterinary, dental and GP practices to nurseries and hotels are sitting on a potentially significant tax windfall.

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“Capital allowances are obscure at the best of times but they can be extremely lucrative when identified.”

Tighe says that every business in the region that owns its own premises needs to look into whether it could qualify for an historical claim.

“There’s no charge for getting in touch to find out if your business is eligible so there’s really no reason not to make the most of this lesser known area of tax relief.”

Since 2014, any unclaimed capital allowances must be identified and documented before, or when, a commercial property is bought or sold — or could be lost forever.

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