This article applies to both purchased and leased retail premises.
In these uncertain financial times, saving money where you can is essential. You could save a substantial amount of money through tax reliefs and savings if you are an independent retail business and you qualify for capital allowances, even if you lease your retail premises.
Typically, 25% of the purchase price/refurb/construction of a retail shop qualifies, but due to this being a specialist subject requiring the support of capital allowances surveyors, it has been widely overlooked in the Retail sector. In turn, thousands of business owners are missing out on thousands of pounds
In this short article, we will tell you what capital allowance is and how you can get help to unlock hidden tax relief in your property.
What are Capital Allowances?
Capital allowances are an expenditure that you or your business may claim against its taxable profit, claimed on assets or items that are essential to the running of the business.
Capital allowances are a means by which a tax deduction is obtained over time on qualifying items or assets.
On average, qualifying retail shops can benefit from c.£35k in tax savings.
Retail Businesses Missed Tax Relief Opportunities
Unbeknown to many retail owners who purchased their property, they were entitled to claim capital allowance tax relief on items that were ALREADY in their property when they bought it.
These are not ‘loose fixtures’ that were agreed upon sale, but ‘embedded fixtures’ that were already fixed to the building and include heating systems, electric systems, ventilation and much more.
Whilst accountants will claim on obvious expenditure, identifying ‘fixtures’ that were already in a building, even if purchased a long time ago, is complex and requires support from specialist surveyors.
Remember, even if you lease your property, if you have spent on refurbishment since, capital allowances still apply.
How Can Your Retail Business Benefit?
Reviewing your capital allowances could not only help you reduce your future tax liability, but in some cases, it could unlock a considerable cash rebate.
Does My Business Qualify For Tax Savings?
You could qualify if:
(a) you purchased a property for £200k or more, or
(b) you lease a property and have spent £100k or more on refurbishments since.
Want to find out if you qualify for a capital allowance reclaim?
We want to find out how many members are potentially eligible to reclaim capital allowances that are unlikely to have been claimed before.
To help us, please complete the short form down below, including your details, along with an indication if you would like to receive a no-cost, no-obligation review from an independent consultant on the matter.
If you don’t wish to be contacted, please still leave your details to support this Bira research.
Fill in this form to see if you'd be eligible for a capital allowance.
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