A key deadline is fast approaching for small businesses to collect a capital allowances tax rebate from HMRC, says a tax specialist.

A key deadline is fast approaching for small businesses to collect a capital allowances tax rebate from HMRC, says a tax specialist.

Any company that owns a commercial premises has a high probability of receiving a capital allowances tax windfall to the tune of thousands, or even tens of thousands of pounds, according to CA Tax Solutions.

The company's managing director Mark Tighe says that January 31 is the deadline for amending April 2011 tax returns for individuals and partnerships.

'To reclaim a double repayment of overpaid tax in the last two years, it is essential that all capital allowances reports are submitted to HMRC before this date,' he says.

'This deadline is especially important for those who have incurred expenditure in the year ending April 2011 as the first £100,000 of qualifying expenditure may be eligible for the Annual Investment Allowance at 100 per cent. A person's right to this 100 per cent tax relief will be lost forever unless the analysis is complete by January 31.'

Research from accountancy firm Deloitte confirms that in nine cases out of ten, capital allowances reports will uncover a tax rebate for the owner of a commercial property.

To date, CA Tax Solutions claims that it has generated £25,000 net for smaller UK commercial property owners, with the biggest tax rebate more than £10 million net.  

Because claims can be made historically, the firm estimates that there is around £65 billion of net tax rebate lying unclaimed in the UK's commercial property stock.

Smaller businesses that own commercial property are most likely to be due a rebate as their accountants will often not understand the intricacies of capital allowances and how to uncover them, adds the firm.

See also: Capital advice for small businesses