With an average saving of £32,000 and an immediate cash injection, it's baffling why most business owners still haven't claimed tax relief against their "plant".
When business owners hear the term "plant" they may naturally think of an actual plant or heavy plant and machinery such as diggers, cranes, bulldozers etc. However in this case the term "plant" refers to items embedded within a commercial property.
On the face it some might say "there is no plant in my commercial property" but this could not be further from the truth. Items such as electrical and lighting installations, heating and ventilation systems, data and communications set ups through to toilets, flooring and door handles all qualify as "plant".
"Every commercial property has embedded "plant"
So lets cut to the chase!
Up-to 40% of a commercial property purchase price can be attributed to plant and even more on a refurbishment or new build project. For an average purchase price of £500,000 up-to £200,000 can be identified as plant and in turn used as a source of tax relief which would save £40,000 plus in tax.
Properties such as care homes, offices, warehouses, serviced accommodation units, furnished holiday lets and more all qualify for capital allowances assuming the business is a qualifying, taxable entity..... which most are.
Claiming capital allowances will result in one of the largest tax savings for your business and will enable you to release capital and secure future growth. At a time when every business owner is searching for savings yours could be staring you in the face each time you walk into your commercial property.
To find out more you can contact us on 0843 005 9711 or email info@jamesnazir.com.
Useful Links
List of qualifying plant - https://www.legislation.gov.uk/ukpga/2001/2/section/23
HMRC qualification - https://www.gov.uk/capital-allowances
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