Business owners who own commercial properties are likely to have considerable capital allowances related to the property that they could claim to reduce their tax liabilities, but many are unaware of their existence. These capital allowances are available on what are referred to as Property Embedded Fixtures and Features (PEFFs).
So what are PEFFs? PEFFs are integral fixtures and fittings which are generally included within the price that you paid for the purchase, extension or improvement to the commercial property. They include, but are not limited to, items such as central heating systems, telephone and electrical sockets, air conditioning units, fire alarms and CCTV. The list of integral features on which capital allowances can be claimed is quite extensive and, because they are wrapped up in the total purchase price of your building, they are often quite difficult to quantify and value.
You may feel confident that your accountant, acting in your best interest, will have claimed all the capital allowances that you are entitled to, but, many accountants are either unaware of the availability of these capital allowances or, more commonly, are unable to quantify them. Irrespective of whether you are a DEB accountancy client or not, we have the means to unlock this valuable resource for you and the amounts involved are often very significant. For example, we have just identified in excess of £200,000 of PEFFs for an office building. The capital allowances associated with these PEFFs could save up to £80,000 for a higher rate tax payer so are well worth taking advantage of.
New rules were introduced in April 2014 which could result in these valuable allowances being lost if they are not identified and quantified prior to the sale of your building, so there is no better time to act than now. If you think we could be of assistance in helping you to identify these valuable tax benefits on your business premises please get in touch with us for a free meeting to discuss your situation. We would be happy to hear from you.