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On-trade failing to claim back £1,000s in capital allowances

Published:  15 February, 2011

Bar and restaurant owners are failing to claim back thousands of pounds worth of capital allowances, says one tax claim firm.

Capital allowances cover electrical items including emergency lighting, switchboards and switchgears and power supplies to data and telecommunications.

Dan Fox, freeholder of a Brighton property which houses French bistro-restaurant In Vino Veritas, managed to claim back £73,754 - 29% of the purcahse price - in capital allowances. The building was bought for £250,000 in 2004. Qualifying for plant and machinery allowances on this property were a number of electrical items, including emergency lighting, switchgears and power supplies. In addition, heating installations and extract ventilations qualified for the greatest amount of allowances under plant and machinery, along with the dumb waiter.

Shaun Murphy, chief executive of Portal Tax Claims, said: "In the current economic climate owners of commercial property such as pubs and restaurants need to mindful of every penny. Most are unaware that such valuable capital allowances are waiting to be claimed. Literally billions of pounds are due to commercial property owners but most lack the necessary expertise to make the claim which can be a complicated process."

The top 10 items commercial property owners are owed tax back on are air conditioning, lifts, heating, lighting, car park security, power, switchgear, transformers, fire alarms and suspended ceilings.