Tax Planning for Commercial Property Owners

Tax Planning for Commercial Property Owners photo

Claiming Capital Allowances

Many businesses own a commercial property or commercial properties which they either use for their business or let either partly or in full to tenants. They can be care home owners, owners of office blocks, student apartment blocks, leisure parks, cinemas, day nurseries, car dealerships, veterinary practices, medical practices, hotels, pubs, clubs, health centres and garden centres; indeed any kind of commercial property.

Owners of commercial properties often don’t realise that they are missing out on a valuable opportunity to claim capital allowances, and therefore to reduce their corporation tax substantially.

Capital allowances can be claimed for nearly all commercial freehold properties (although with some exceptions - notably properties held offshore or in trust, properties held by charities, local authorities and by executive pension funds). They can be claimed retrospectively but realistically the property should have been purchased less than 15 years ago.

Lawrence Young can advise you on all the tax planning aspects of buying, selling or refurbishing a commercial property and is able to make capital allowance claims on your behalf to HMRC. The scheme is a comprehensive service for which there are no up-front fees, no survey fees, no interim payments, and no risk. The service includes updates and advice on changes in capital allowance legislation.

If your business owns commercial properties and you are interested in how capital allowances can be claimed to reduce corporation tax please call us. We will be pleased to go through how it will work for your business and how it will affect your overall tax position.

Stamp Duty Reduction

Stamp Duty Land Tax (SDLT) is currently paid at the rate of 3% for UK Tax payers purchasing Land or Property in the UK for a purchase price of between £250,000 - £499,999. At £500,000, and above, SDLT is paid at an even higher rate of 4% of the purchase price.

Lawrence Young can offer UK residential and commercial property purchasers the opportunity to reduce heir SDLT costs to 1 1/2% + VAT for the 3% band and 2% + VAT for the 4% band. Through our various schemes we can offer substantial savings to all purchasers whether you are single, a couple, married or a limited company.

Key Points

  • The scheme is offered on a no-win - no-fee basis
  • There are no up-front fees - fees are paid on completion when a certificate is received from HMRC
  • The scheme will NOT hold up the sales process
  • No liaison with vendor's solicitors is necessary
  • SDLT schemes have been operated for over 4 years - to date, no case has been successfully challenged
  • Our portfolio of products allow us to deal with ALL types of purchaser and tenure. Special planning is required for purchases involving VAT. 
  • Our Specialised Panel Solicitor is notified the same day as your Instruction.
  • SDLT5 certificate is received within 3 weeks max

Examples

Mr Dave Williams was purchasing a residential property for £350,000 and took out a mortgage in order to complete the transaction. With our help, Mr Williams' actual cost was only £5,250 + VAT (£918.75), making Mr Williams a saving of £4,331.25.

Mr Jon Brown is purchasing a residential property for £750,000. Mr Brown's SDLT requirement on this at 4% would be £30,000. With our help Mr Brown's actual cost is only 15,000 + VAT (£2,625 ), making Mr Brown a saving of £12,375