People buying commercial property in Bedford have been warned to “use it or lose it” over a change in the tax law.
In the 2012/13 tax year, investors in Bedford spent £29.1million on offices, the medical sector and hospitality industry, receiving back capital allowances of £4.4million.
National specialists Catax Solutions say that from April 1 with the implementation of the 2012 Finance Bill, the law changed, meaning property vendors, their lawyers, or accountants have to identify and document roperty capital allowances at the point at which commercial properties are bought or sold.
Mark Tighe, managing director of Catax Solutions said: “With over 98,000 UK commercial property transactions set to take place in the coming year, unless more people sit up and take note of the legislative changes that are now upon us, Britain’s commercial property owners will be haemorrhaging tax relief in the coming financial year — and every year thereafter.
“Unfortunately, the loss of a sizeable tax benefit is only the start. Things are likely to get litigious for any party that oversaw the transaction — whether lawyer, broker, accountant or financial adviser — when their clients discover that they have lost potentially sizeable tax relief.
“If awareness levels stay as they are then, from a legal standpoint, the next few years could be fractious and represent a considerable financial threat.”