Use it or lose it

Businesses across the UK are losing out on millions of pounds in unclaimed property allowances and run the risk of significantly reducing the value of their premises as new tax rules bite.


nges in the Finance Act that come into effect in April 2014 mean that tax allowances for commercial building fixtures could be lost to a new buyer and all future owners.
The warning comes from a senior tax consultant at global information services company Wolters Kluwer.

Neil Tipping, tax consultant at Wolters Kluwer, said: “It is no exaggeration to say that the vast majority of commercial properties have embedded fixtures for which their owners and accountants have never claimed tax relief.

“It may sound too good to be true, but our experience working with a range of businesses, and their financial and legal advisers, confirms the extent of the dormant tax benefit nestling in integral features of buildings.”

Unless a company has already had its buildings and books reviewed by specialist surveyors and tax experts there are almost certainly unclaimed allowances available.
Since April 2012, property sellers who have claimed or intend to claim allowances for integral features must agree a fixed value for the transfer.

And from April 2014, sellers who have not yet claimed must also ‘pool’ – though not necessarily claim – these allowances to keep them alive for future owners.