Landlords are missing out on legitimate claims against tax

Landlords with a pcapital allowances tax reliefortfolio of buy-to-let properties could be missing out on claiming thousands of pounds of cash back from the taxman.

Legislation dating back more than 100 years allows property owners to claim back capital allowances worth tens of thousands of pounds against various fixtures and fittings in commercial properties – and some instances, BTL rental properties are included.

UK landlords can claim capital allowances, including those with student lets, professional shares, and more traditional HMO lets.

The allowance is a form of relief available against any capital expenditure made buying, renovating or making adjustments to a commercial property. This is not a loop-hole or tax avoidance scheme. It is a provision made by HMRC, but so few eligible business people and landlords actually claim.

For BTL/rental properties to qualify, those that are residential should be shared flats or houses with two or more bedrooms, worth £100,000 or more and owned by UK taxpayers (individuals, UK trusts and UK companies) paying income tax at a rate of 40%.

In some circumstances that can mean there are tens of thousands of pounds worth of rebates available to the property owner, because this tax relief can be backdated to the year the property was purchased.commercial mortgage office buildings broker cardiff

It is quite alarming to consider that many accountancy practices are simply not aware of the potential of these valid claims and as such do not advise their Property Investor clients accordingly. If you find yourself eligible for such a scheme, but your accountant has not suggested it to you, then you should ask yourself what other aspects of accountancy and taxation are you missing out? And does your accountant have a lack of basic expertise or simply not care about you as a client?

When it comes to this aspect of capital allowances, accountants who offer the correct advice on the matter often call in specialist surveyors to report on the areas of potential relief. If you have not looked into the potential of saving via capital allowances previously, please contact Howard Bowes on 029 2175 4150 today and we can make arrangements for an initial review at no cost.

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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