Allowances alert for businesses

Yorkshire businesses could be missing out on millions of pounds of unused tax allowances on commercial property, according to accountancy firm Armstrong Watson.

Research has shown that nine out of 10 owners of UK commercial property are due a rebate because of unused capital allowances, according to the firm, which has offices in Leeds, Northallerton and Skipton.

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Partner Peter Molyneux said: “It can make a massive difference to a business’s tax bill as to whether these “‘hidden’ allowances have been claimed or not. While ‘loose’ items such as white goods and carpets are usually claimed, it is the fixed items such as heating systems, air conditioning systems and electrical systems that are often missed.”

Mr Molyneux said a hotel costing £1m could have an average capital allowances claim of around £270,000, which for a 40 per cent taxpayer represents a £108,000 tax saving over the lifetime of the business.