If you own a Furnished Holiday Let (FHL), Houses with Multiple Occupancy (HMO) or a UK-Based Commercial Building you are entitled to claim capital allowance tax relief against the plant and machinery contained in these buildings as set out in the  2001 Capital Allowance Act.

The capital allowances including fixtures and fittings can amount to up to 20% of the original property value.  Claims can be made even if the property has been owned for a number of years.

This is not a loophole – Capital Allowances are there to be legitimately claimed.

However, the Government is currently consulting on shortening the period when this expenditure has to be recognised to 2 years effective from April 2012.  Therefore, you should act now as you may be entitled to large refund of tax and after April this could be lost.

This is a specialist area which requires detailed knowledge  of tax law which is why HMRC believe that only 4% of those entitled to make a  claim actually do so properly.

If you would like more details regarding this and making a claim please contact our specialist, Sarah Curzon sarahc@clayshawthomas.com  for further information.

Taxpayers have been warned by HM Revenue & Customs (HMRC) about bogus tax rebate claims.

As the January 31st deadline for self-assessment tax returns looms ever closer the amount of fraud emails claiming to offer rebates are on the increase.

In reality the emails are designed to obtain the bank details and card numbers of unsuspecting taxpayers. Last year many of CST’s clients received similar emails and queried whether they should complete the details requested.

HMRC has confirmed that it never contacts taxpayers via email with regard to tax rebates and you should not respond to these emails or provide your personal details on email.

Joan Wood, director of HMRC Online and Digital, commented: “We only ever contact customers who are due a tax refund in writing by post. We currently don’t use telephone calls, emails or external companies in these circumstances.

“HMRC will do everything possible to ensure those people receiving this email know what steps to take to protect their information, and we are working closely with other law enforcement agencies to target the criminals behind this serious crime and see them brought to justice.”

The last three months has seen HMRC shut down no less than 185 bogus websites responsible for generating the emails.

HMRC has announced that electricians will be the next group targeted as part of its crackdown on tax evasion.

The Electrician’s Tax Safe Plan will be launched in February 2012 and will offer favourable terms for electricians to come forward and declare their unpaid tax. Following this, HM Revenue & Customs will target those in the trade who have not come forward.

This campaign follows the Plumber’s Tax Safe Plan launched in 2011. From this
campaign, over 600 voluntary disclosures during the campaign brought in £328,000 to the Exchequer. The second stage of the campaign, targeting those who had not come forward voluntarily – resulted in five arrests and investigations opened into a further 600 people.

It is widely believed that with this new plan we will see HMRC using more Section 16 notices over coming months to obtain further information prior to the plan going live in February next year. Following the resulting arrests and investigations opened in the second stage of the Plumber’s Tax Safe Plan, it would seem wise that Electricians come forward and use the opportunity of voluntary disclosure, if they have undeclared income, whilst favourable terms are offered.

Read more at Accountancy Age

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