You don’t have to be Bill Bryson or Michael Portillo to know that the United Kingdom is a place of infinite wonder if you love the simple things
Every Spring and Summer we pack Wellingtons, Waterproofs, Shorts, and T-Shirts in equal measure, coax the Dog into the boot and set off to our chosen corner of the UK. This summer is Norfolk, last summer it was the Lake District, and this Spring it was to be West Wales before we were all confined to barracks for the duration.
The recent (and I must say sensible) move by HMG to restrict travel to Spain has caused disquiet, controversy and a great deal of (some quite justified) moaning but what it does mean, is that holidaying in the UK is back in vogue.
Haven Holidays have reported an increase in bookings at their parks of 96% compared to last year and demand for camping sites in Devon has increased by 140% over the last few weeks.
All of this will be manna from heaven for those operators and owners, large and small, looking to recoup revenues lost to the lockdown. Many will come out with increased revenues year on year with great demand spurred by the fear of a second wave being imported from Europe.
With increased revenues (generally) come increased profits. And with increased profits come increased taxes. A good problem to have but a problem nonetheless. Which brings me to the points of my missive.
You can use Capital Allowances to provide a refund now or future tax savings later on the lovely bookings you are about to make!
Capital Allowances are a tax relief designed to incentivise business owners like you to improve their commercial properties. They have been around for decades and are a well-recognised part of the UK tax landscape. They are allowances that provide relief to tax for expenditure incurred improving a commercial property. Any item of expenditure which has an “enduring benefit” to the business can qualify for relief. From Gazebos to Garden Equipment to Grab Rails, you will be surprised at what can qualify for relief.
Within a Holiday Let valued at £350,000, there may be as much as £70,000 in unclaimed Capital Allowances. For a property owned by an individual that equates to a tax refund or future saving of as much as £28,000.
If you own a hotel, B&B, Caravan Park, Camping Site, or Holiday Park the rewards will be exponentially bigger.
In most cases, the owners of such properties will not have claimed for items such as:
Heating and Lighting Systems
Entry and Exit Systems
Emergency Lighting and Fire Detection Equipment
Air Conditioning
Fittings in Communal Area
Items such as these in the property could give rise to a capital allowance totalling on average 25% of the value of the property.
For the layperson putting a claim together is tough. For an accountant, it will usually be out of their field of expertise.
Would you like to hear the good news? We can do all of this for you. We can manage the whole process from consultation to refund.
How do you get started? – just contact us however you feel most comfortable and we will be in touch to get the ball rolling.
This advice was supplied by Rufus & George.
