December has arrived and while it may feel far too early to be making decisions for the next 12 months, for many commercial property owners and their advisers it may be something worth looking at early on.
During 2020 we have helped our clients claim Capital Allowance tax savings across all sectors and grades of property with nationwide coverage. In some cases, we have helped them get cash back or a tax reduction by reviewing property purchases and capital expenditure on property from earlier years. This may still be possible and may improve your cashflow in 2021.
The final weeks leading up to the tax submission date in January for personal tax and often March for corporate tax have always been a bit of a mad dash to get tax affairs in order.
On many occasions we find that capital allowance claims on commercial property expenditure are not considered until just before submission date when a claim could make a substantial reduction on your tax liabilities or in some cases a refund. It is at this point that it is realised that not enough time has been left to process a claim and it may end up being submitted into another tax year instead, which is not ideal for tax planning purposes.
It would be worth looking into your acquisitions on commercial property where claims have not been made (and any future disposals as well) to ensure you have plenty of time to pursue any potential claims. In addition, any spend on improvements, extensions etc which have been treated as Capital Expenditure could well produce additional tax savings particularly where they qualify for the Annual Investment Allowance. This valuable allowance has been extended to £1M for a further 12 months up to 1 January 2022.
There are numerous benefits to starting now when it comes to pursuing potential claims. Firstly, it will help to ensure that the information provided is accurate, allowing time to check any queries. Secondly, responding promptly will give you the peace of mind that your claim has been made with care and consideration rather than rushed at the last minute. Thirdly, it may also end up revealing some extra tax relief under your Christmas Tree this year.
Please get in touch with us for advice on your Capital Allowance claim. We are keen to work alongside your existing advisers who may not have the specialist knowledge that we have in preparing Capital Allowance claims. By working with your advisers, we can maximise your claim.
Early engagement is always a good idea for Capital Allowances claims but if you do have immediate deadlines we are here to help and will always do our very best to help you achieve them.
You can sign up for a free initial review and also subscribe to our helpful Capital Allowance email updates on our website at www.stuart-rivers.co.uk.
From everyone here at Stuart Rivers Associates, we wish you all a Merry Christmas and a Happy New Year! We look forward to assisting you in 2021.