Shropshire business owners who have taken on new premises or carried out major refurbishments have been warned that new legislation is on its way.

Keith Winter, of Dyke Yaxley Chartered Accountants, in Shrewsbury, said new rules on capital allowances could have serious consequences for property owner-occupiers and investors.

"The proposals on capital allowances claims for plant and machinery fixtures in buildings are likely to be passed into law as early as April next year.

"So it's vital that business owners act now if they want to make the most of this window of opportunity that remains for the tax allowances to be claimed."

Keith said the new rules would force claims for capital allowances to be made within one year of when the purchase was made.

If this doesn't happen, then no capital allowances claims will be available to either the original owner or any subsequent purchaser - and it's likely that all expenditure incurred prior to that date will also be subject to the restriction.

"HM Revenue and Customs will also require owners in future to submit a record of agreement for all purchases to show how much of the purchase cost relates to plant and machinery," said Keith.

"All of this places the burden on the purchaser who will have to make sure they submit their claims within the strict timescales set out in the legislation.

"These measures could mean that businesses and commercial landlords will miss out on allowances that they are actually entitled to.

"So if this affects your company, you must review any expenditure on business premises and make a claim as soon as possible.

"And it's not just the new capital allowances rules that you need to consider - as well as the time limit restriction, changes in rates of Corporation Tax and a planned reduction in the writing down rates of Capital Allowances will dilute the value of claims even further in the future."

For more information about Dyke Yaxley, please visit their website here: www.dykeyaxley.co.uk