Can You Afford To Miss Out On Tax Relief?

Commercial Property Tax Allowance is a term that may refer to several different types of tax reliefs or allowances available to businesses that own or occupy commercial properties. These allowances can significantly reduce the tax burden associated with owning, leasing, or operating commercial property and real estate. At Complete Capital Allowance, we are experts in this field, so let’s start with an overview.

1. Capital Allowances on Commercial Property

Capital allowances play a crucial role in reducing tax liabilities for businesses investing in commercial properties. These allowances cover expenditures on fixtures, fittings, and integral features within commercial buildings, such as heating systems, lighting, and security installations.

Although often included in the property’s purchase price, these can be split out to make a capital allowance claim. As a result, businesses can maximise tax savings and improve their overall financial performance.

2. Business Rates Relief for Commercial Properties

Business rates are a significant expense for businesses occupying commercial properties. However, various relief schemes exist to alleviate this financial overhead.

Companies may qualify for relief on rates for specific types of properties, such as small businesses, vacant properties, or those undergoing redevelopment. Understanding and leveraging these relief schemes can result in substantial tax savings for businesses.

3. Land Remediation Relief for Commercial Sites

Aimed at regenerating brownfield sites, contaminated land and environmental eyesores, Land Remediation Relief (LRR) was introduced by HMRC in 2001 and updated in 2009.

LRR allows businesses to claim up to 150% corporation tax relief on the costs incurred during the decontamination of land or buildings. This means that for qualifying expenditures, you can enjoy a deduction of 100% and an additional 50% against your corporation tax.

4. Renewable Energy Tax Allowances for Commercial Properties

Businesses embracing renewable energy technologies for their commercial properties can benefit from various tax allowances and incentives. For instance, schemes like the Renewable Heat Incentive (RHI) or the Enhanced Capital Allowances (ECA) scheme for energy-saving technologies provide tax relief for investments in renewable energy systems. By capitalising on these incentives, businesses can reduce their tax liabilities and contribute to environmental sustainability efforts.

In Summary

Commercial property tax allowances offer valuable opportunities to reduce tax liabilities and improve financial performance. By understanding and leveraging these incentives, businesses can maximise tax savings and optimise their investment in commercial real estate.

Proactive tax planning can result in significant financial benefits for companies operating in the commercial property sector, whether it’s claiming capital allowances, securing business rates relief, or accessing incentives for environmental and energy initiatives.

At Complete Capital Allowance, we are here to help you. We are experts (as the name suggests) in Capital Allowances and Land Remediation Relief. Our team of experts are ready to guide you through the process, end to end, offering a no-obligation and risk-free service.