Capital Allowances for hotels

As an owner of either a Hotel, Guest house or Bed & Breakfast establishment, do you know you can be sitting on a little known tax stimulus given by Her Majesty’s Government? One that is rightfully yours to claim?

We all know that over the last few years the hotel industry has been suffering with a drop in bookings. With the upcoming Olympics just around the corner, hoteliers are anticipating a boom in bookings and therefore higher profits for the business.

Obviously the Tax man is going to want a ‘piece of the action’. There is good news though, with the help of CA Tax Solutions your Hotel Allowances would help you keep more of your well earned profits. ‘How’ I hear you cry?

Due to the Capital Allowances Act 2001, you are likely to be sitting on untapped tax relief and possible rebate. This is a stimulus which has been around for more than 70 years and is readily available to all commercial property owners who understand what it takes to claim. You should unlock your Capital Allowances as this is your right to claim. Capital Allowances claims are based on the integral Capital Allowances pool that allocated to your Hotel, Guest House or Bed & Breakfast. This is a specialist area and in no way undermines your accountants ability.

Capital Allowance claims are only claimable through a handful of specialists in the country, with CA Tax Solutions being one of the main companies.

This is what the Guardian has written about our company and our services

An Example;

  • Mr Bourne bought a hotel in Greenwich for £850,000 in 2007
  • CA Tax Solutions identified £382,500 Capital Allowances pool
  • Mr Bourne is a 40% tax payer
  • He received a tax rebate of £30,600
  • His tax relief this year will be £24,480
  • His overall tax relief will be £136,338 after all fees and deductions

To discuss whether your commercial property fits the criteria and to get your claim started call us on 0161 968 2035. We look forward to speaking to you.


Budget changes and your Capital Allowances claims

With the Chancellor, George Osborne, announcing a change in corporation tax and a drop in tax for high earners in the 2012 budget, perhaps its not all ‘doom and gloom’!

How will this affect your business though??

Most people see the tax changes as a great benefit for all parties involved as they help take a little more tax pressure off companies. However, if you have not yet claimed on the Capital Allowances on your commercial property, it does mean you will be receiving slightly less than if you processed the claim 5 years ago, given recent changes;

  • Corporation Tax:
    • 28% reduced to 24% tax payers
    • 21% reduced to 20% tax payers
  • Personal Tax:
    • 50% reduced to 45% tax payers. Earners in excess of £150k
    • 40% tax band introduced to earners over £34,370(used to be over £37k)
    • 20% tax band for earners over £8,105

It seems that most people will be better off when it comes to their earnings.

If you own a commercial property in the UK or Europe you should claim for your full Capital Allowances. Now is the time to ‘cash in’ for a windfall in the form of tax relief and a tax rebate.

Under Capital Allowances rules you can claim on the integral features of the intrinsic fabrication and also plant and machinery within your building. We have found that around 90% of commercial property owners have not claimed all the Capital Allowances they are entitled to, and even when most accountants say they have dealt with Capital Allowances, they often miss large areas that they may not be aware of, due to the rules changing frequently. You could be missing out on thousands of pounds by not checking with a Capital Allowances specialist.

We work as part of CA TAX Solutions who are the largest Capital Allowance specialists (as confirmed by The Guardian) and can help you to claim tax rebates and future tax relief on the profits of your business!

An example of a recent claim;

  • ·         Industrial building with an office
  • ·         Bought in 2005 for £2million
  • ·         Rented to a large manufacturing company
  • .         40% tax payer
  • ·         Capital Allowances pool identified at £500,000
  • ·         Tax rebate granted at £45,000
  • ·         2012 tax relief given £36,000
  • ·         The above add up to £81,000 benefit this year
  • ·         A further £124,000 to be given as tax relief over the coming years
  • ·         Overall Capital Allowances re-payment benefit of £205,000

If you want to know what you will be eligible to receive, do not hesitate to contact us. Let us provide you, free of charge, with an estimated calculation and necessary information regarding your property. We await your enquiry and will be happy to inform you of the possibilities. Call 0161 968 2035 to speak to one of our specialists.