Business Rates Rebate and Capital Allowances - Commercial Property
(1) Business Rate Rebate:
Business Rates can represent a significant annual cost to any business. The Valuation Office Agency (VOA) reviews ‘Business Rates’ every 5 years, the last review being April 2010.
The Rateable Value is a broad representation of the annual rent for which the property could have been let on the open market as of two years prior to the effective billing date.
Subsequently current billing which commenced in April 2010 was based on the Agency’s valuation of the premises in 2008 and therefore represents a pre-recession value which does not necessarily reflect the reduced recessionary value as at April 2010
The VOA generally evaluates business premises on a generic basis and without identifying specific circumstances on a property by property basis.
Thousands of business properties are therefore wrongly valued due to:
- A physical change in the building or local area
- The use of the building being changed in whole or part
- The property or part of the property being exempt
- The split property not being treated as such, or several properties which should be merged for valuation purposes
- The property value being inconsistent with similar properties in similar areas
Because of the significant number of businesses incurring higher Rate charges since April 2010 we have negotiated a national service contract with the UK’s leading provider to assist our clients on a ‘no win, no fee’ bases.
We are working with our specialist professional partners to identify potential rebate cases and optimise the opportunities for a successful appeals process.
Our professional partners have been specifically chosen for the following reasons:
- UK market Business Rate Rebate specialists recommended to us by clients who have already saved money
- No costs incurred except on success and even surveyors fees are paid by our professional partners.
- A ‘worry-free’ process with only nominal resource required for meetings with their surveyors
- They helped 36,000 businesses secure a Business Rates reduction during the previous 5-year cycle between April 2005 and to April 2010 saving businesses an average of 10% but as much as 30-40%
- Surveyors are ex Valuation Office Agency staff with any savings carried to 2015 and back-dated to April 2010
- A proven strategy for breaking down the RV into various finite elements including location, sector, usage (room to room), and compare these with other similar properties in similar locations.
- Rateable Value in excess of £20,000 per annum
- No current or previous formal appeal can have been lodged within the current 5-year cycle (from April 2010)
We hope you will share our view that ‘nothing ventured, nothing gained’ and with no financial outlay unless you win, and little resourcing required during the process why wouldn’t you contact us to discuss if your own Business Rates could be reduced?
(2) Capital Allowances – Commercial property
Capital allowances are rightfully claimable by most profit making UK business which pay tax and these allowances serve to provide tax relief for the depreciation of assets acquired to run a business.
As a tax-paying business we, like you, would welcome any opportunity for a reduction in our tax bill, or a rebate against previous tax paid.
Tax issues and allowances pertaining to an operating business are usually dealt with by accountants, however in instances where a business has acquired or refurbished a commercial property tax savings are not maximised in the vast majority of cases.
In fact, because the process of claiming full allowances against commercial property can be complicated, 90% of commercial property owners who are eligible for increased allowances do not take advantage of the opportunity.
How does it work?
Capital allowances claims are a very specialist area, and require property surveying skill in order to correctly identify and optimise entitlement.
We work with leading specialist advisors who will engage with our clients and arrange a visit to view the property.
If a viable claim can be identified our specialists will formally engage with the client, carry out the necessary work to deliver a detailed report for HMRC and secure a tax repayment or future saving.
A fee for the service is calculated as a percentage of the savings generated and therefore the cost is self-funding, based on the success of the process.
Qualifying Guidelines:
- Commercial property acquisitions for investment or occupation
- Commercial new-build, extension, or refurbishments
- Business equipment purchases
- Clean-up of contaminated land
- Research & Development undertaken, bought or built
- Property acquisitions in excess of £500,000 (including refurbishment costs)
- Ideal sectors include care homes, surgeries, pubs, hotels, restaurants, motor trade, offices, retails, and industrial units
- Claims may be available retrospectively on acquisitions
