New proposed capital allowance tax for retailers
By FashionUnited
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Retailers need to take note of new proposed tax changes which could mean significant shifts within the retail sector. Following the recent publication of a consultation document on capital allowances, Her Majesty’s Revenue and Customs (HMRC)
has recently proposed changes to capital allowances rules which would affect the way tax relief can be claimed for expenditure on new business fixtures. As most retailers tend to have a ongoing programme of updating and refreshing their stores across lots of locations, it’s a particularly relevant issue for businesses in the sector.Imposing a time limit on claiming capital allowances would mean that loss-making retail businesses would need to quantify qualifying expenditure now to “bank” the allowances for future use if and when they return to profitability. The tax authorities are inviting comments from retailers on their proposals so for those likely to be hit, it might be worth appealing to the HMRC.