If your business is buying or selling commercial property the tax implications can make a big difference to your finances. Tax law can be very complex so it’s hard to know if you’re really getting the best out of your deal. Our commercial property solicitors work with market leaders in tax advice to deliver commercially-minded tax solutions to our clients. Call us on 01616 966 229 to find out how we can help your business.
As part of our end-to-end commercial property service we are able to identify the best way of conducting a deal to minimise the tax cost of the transfer. Many businesses make the mistake of selling property without consulting specialists in the field of commercial property tax law. General practice professionals often miss important steps in the commercial property sale process that can leave your business with a tax burden that could have been avoided. The organisations we work with specialise in commercial property tax advice and can make sure you don’t miss out on the tax relief and capital allowances your business is entitled to.
For illustrative purposes here are some examples of the substantial tax savings available:
Office Premises
Purchase Price £1,200,000
Capital Allowances £470,000
Tax Saving: £131,600
Nursing Home
Purchase Price £3,178,764
Capital Allowances £1,226,429
Tax Saving: £343,400
Hotel
Purchase Price £11,487,230
Capital Allowances £4,190,034
Tax Saving: £1,173,209
Some of the ways we can help include:
- Ensuring your sale complies with the changes instituted by the Finance Bill 2012. Under the terms of this bill businesses now have to take even more steps to ensure they are able to take advantage of the capital allowances they are due. This includes submitting highly detailed forms to HMRC and negotiating the sharing of capital tax allowances and tax relief with the other party. Failure to comply with these highly detailed rules can result in HMRC refusing to grant any capital allowances at all, potentially leaving your business with a significant and entirely avoidable tax burden.
- Complying with HMRC regulations. New rules mean that HMRC will have little tolerance for businesses that fail to comply with their extensive tax regulations. The slightest error can result in your business forfeiting tax relief and ending up with an unnecessary tax burden. The organisations we work with can ensure you meet every HMRC requirement and secure the tax relief or capital tax allowances your business is due.
- Claiming capital tax allowances and other tax relief. Many businesses sell commercial property without claiming all the capital tax allowances they are due. If the seller of property you have purchased has not claimed their capital tax allowances then we can recover them for you and you can then set them off against your next tax bill.
Furthermore, if you’ve made improvements to your commercial property you may be able to claim the cost of those improvements as a tax relief or capital allowance. In some cases this can be as high as 100% of their cost. Many businesses don’t realise the extent of the improvements to commercial property that are tax deductible.
To make sure your business gets the most from your commercial property deal, talk to Stephensons today on 01616 966 229.