Tax break of £13.5m could be music to HMV’s new owners’ ears

They will also be in the minority because more than 90% of UK commercial property owners completely fail to capitalise on their unclaimed capital allowances each year.

The tax concession could be worth 25% of the HMV’s reported price tag of £50m
Each outlet within HMV’s 220-store portfolio would be eligible for tax relief of between £280,000 and £350,000 on average. HMV’s flagship store on Oxford Street alone may contain claimable items estimated at £1.92m.

What holds true for the administrators of HMV applies to every other commercial property owner in the land. Capital allowances are a valuable but often hidden tax break and available to all businesses owning commercial property, but specialist advice is not widely available and too many commercial directors are failing to unlock the hidden value in their tax codes.

Shaun Murphy, managing director of Portal Tax Claims, comments:

“Capital allowances are a silver lining in the dark demise of HMV. Millions in unclaimed relief could be up for grabs and HMV’s new owners are potentially sitting on a gold mine. I encourage all high street administrators to review all fixture and fittings and think carefully about capital allowances before disposing of what are potentially valuable assets.”

Common fixtures and fittings that tax relief can be claimed on include:
· Security shutters and doors

· Carpet or carpet tiles

· Raised access floors

· Suspended ceilings

· Cash desks and fittings

· Other fixed racking and display fittings

· Signage

· Kitchen/utility fittings

· Bathroom fittings

· Hot and cold water installations

· Heating installations

· Air conditioning or mechanical ventilation systems

· Power installations and equipment

· Display lighting installations

· Emergency lighting

· Lift installations

· Fire fighting equipment

· Smoke detector or fire alarm installations

· Security installations

· Data network installations

· Till and stock control systems

· Telephone installations

· TV and music installations

· Public address installations