Owners or leaseholders of a pub could be entitled to claim tax relief for the cost of its fixtures and fittings —including kitchen and bathroom fittings, central heating and lifts — West Sussex-based chartered accountants Carpenter Box has claimed.
'Act fast'
However, the firm, which specialises in identifying tax savings, has warned that pub owners need to act fast because, under the 2012 Finance Bill, all necessary claims for tax relief must be made before April 2014 for those looking to sell their property.
The firm said it has identified more than £1m of expenditure that qualified for capital allowance tax relief during the past two years.
Carpenter Box partner Nathan Keeley said many pubs are not aware of what they could be claiming.
“You could enjoy a tax refund, a reduction in your future liability, or both,” he said. “The largest amount claimed for one of our clients in the hospitality business amounted to more than £182,000 of expenditure across their sites that qualified for capital allowances.”
HMRC factsheet
Her Majesty’s Revenue & Customs’ factsheet on capital allowances states: “Anything you use that has a useful economic life of at least two years may qualify for capital allowances.
“This does not apply to items that it is your trade to buy and sell.”
It adds: “[These] can be claimed by completing the relevant capital allowances boxes on your [tax] return. The boxes to be completed will vary according to the type of return.”
Visit the HMRC website for further information.