Businesses in Fenland are in line for a tax break windfall worth in the region of £14 million according to new research by Portal Tax Claims, the UK’s leading capital allowances specialist.
An estimated 380 firms in Fenland are still eligible for the tax rebate under Government rules for businesses owning commercial property.
Most large corporations have taken full advantage of the system of capital allowances, according to Portal Tax Claims, but many small and medium-sized enterprises are failing to lodge a comprehensive claim. Portal Tax Claims calculate that the total value of the tax relief through these unclaimed allowances has now reached £8.8 billion nationally.
Shaun Murphy, Managing Director of Portal Tax Claims, comments: “Businesses in Fenland are missing a trick as far as capital allowances are concerned, often assuming that their accountant has the matter in hand. A second common misconception is that capital allowances only apply to items such as computers and vehicles. Our research shows that many firms are failing to take their business premises into account and that each property potentially contains thousands of claimable items. Submitting a rebate can be daunting for the uninitiated but the financial rewards can be significant.”
Portal Tax Claims’ research suggests that around 2,000 businesses who submitted this type of capital allowances claim to HMRC in 2012 would have received an average tax relief “pay-out” in excess of £36,000. Allowances can often be found up to a value of 40 per cent of a property’s purchase price and it is thought that some 90 per cent of commercial buildings in Fenland are eligible for a rebate.
Shaun said: “Our research highlights how businesses in Fenland are missing out on millions in unclaimed tax breaks. At a time of economic hardship, a tax-payout on this scale would make a major difference – fuelling expansion programmes, driving economic growth and ultimately helping Britain get back on its feet. Portal Tax Claims urges the Fenland business community to act now or risk missing out.”