Many could be missing out, an expert says (Image: Hispanolistic via Getty Images)
Property owners and businesses throughout Britain could be sitting on thousands of pounds in unclaimed tax refunds without realising it. From overlooked capital allowances to incorrect council tax bands, one specialist is warning the public that many have unknowingly overpaid the taxman and are entitled to money back.
The issue impacts commercial property owners, investors, and businesses who may be owed thousands of pounds in refunds. Yet most remain oblivious that they could be entitled to claim back overpaid tax from previous years.
Chris Roberts, managing director of Capital Allowance Review Service, a specialist firm helping UK commercial property owners recover overlooked tax reliefs, explains why so many people miss out on money they’re legally entitled to claim.
“Most property owners and businesses focus on paying their current tax bills, but they don’t realise HMRC allows you to go back and claim reliefs you might have missed,” said Mr Roberts.
“We regularly help clients recover thousands in overpaid tax through legitimate claims they had no idea they could make.”
The hidden reasons you could be owed money back
The intricate nature of tax legislation means that even conscientious UK taxpayers can miss allowances, reliefs and corrections, potentially losing out on legitimate refunds that could put cash back in their pockets. “The tax system is incredibly complex, and it’s designed to collect revenue rather than highlight what you might be able to claim back,” explained Mr Roberts.
“Most people assume they’ve paid the right amount, but our experience shows that’s often not the case.”
It is well worth looking into (Image: Alamy/PA)
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Mr Roberts said there were four common causes of tax overpayment that could entitle you to a refund.
Overlooked capital allowances on fixtures and fittings
One of the most significant areas where property owners miss out is capital allowances on fixtures and fittings. When you purchase or enhance a commercial property, items such as lighting, heating systems, fitted kitchens, and even carpets can qualify for tax relief.
“We’ve seen clients miss out on tens of thousands because they didn’t know that things like air conditioning units, security systems, and even toilet facilities can qualify for capital allowances,” said Mr Roberts. “These items are often overlooked during property purchases, but they can generate significant tax savings.”
The relief can often be claimed retrospectively (provided conditions are met), meaning you may go back and claim for items purchased in prior years – though in some cases, tax years may be closed or the property sold, limiting opportunity. This proves particularly valuable for property investors who may have purchased multiple properties without realising the full extent of available allowances.
Erroneous Council Tax bands
Homeowners could be overpaying council tax due to incorrect property banding assessments. Properties are valued according to their 1991 worth, yet numerous homes have been wrongly categorised or remain unadjusted despite major alterations.
Dwellings that have undergone extensions, subdivisions, or changes of use might still carry obsolete bandings. Even minor reductions in council tax categories can deliver annual savings of hundreds of pounds, whilst successful appeals may trigger refunds stretching back several years, depending on statutory challenge or amendment timeframes.
HMRC could owe you (Image: Peter Dazeley via Getty Images)
Overlooked property and commercial reliefs
Numerous relief schemes exist that many property holders and enterprises remain unaware of. Small business rates relief, vacant property relief, and charitable exemptions frequently go unclaimed.
“Business owners often focus on their core operations and assume their accountant has claimed everything possible,” said Mr Roberts.
“But even experienced accountants can miss specialist reliefs, particularly around property taxation.”
Certain reliefs carry time constraints, making swift action crucial. Nevertheless, others may be claimed retrospectively, making it worthwhile to examine previous tax positions.
Mistakes in historical tax submissions
Simple mistakes in previous tax returns can lead to overpayment. Misclassified expenses, overlooked deductions, or calculation errors can all result in paying more tax than required.
Professional fees, maintenance costs, and financing expenses are often misclassified or completely omitted. While these may seem like small amounts on their own, they can accumulate to substantial overpayments over several tax years.
How to check if you’re eligible for a tax refund from HMRC
Mr Roberts suggests beginning with a systematic review of your property and business tax positions. “The first step is gathering all your property purchase documents, improvement receipts, and tax returns from the past few years,” he explained.
For capital allowances, search for any fixtures, fittings, or equipment purchases that weren’t claimed. For council tax, verify whether your property’s characteristics match its current band. For business reliefs, examine whether you’ve claimed all available allowances for your property type and business activities.
“Don’t assume that because something was handled by professionals, it was handled correctly,” said Mr Roberts. “We regularly find unclaimed allowances even in cases where established accountancy firms have been involved.”
When reviewing your council tax position, remember that since April 2025 councils in England can apply a premium on second homes. This is an additional charge, not an overpayment refund.
Mr Roberts concluded: “These mistakes are so common because the UK tax system places the burden on taxpayers to identify and claim reliefs, rather than HMRC automatically applying them. Most property owners and business managers are focused on running their operations, not becoming tax experts. They rely on their accountants, but even qualified professionals can miss specialist areas like capital allowances because the legislation is constantly changing.
“What surprises a lot of our clients is how far back they can go to claim reliefs. For capital allowances, you can often go back to when you first acquired a property, even if that was several years ago. We’ve helped clients recover five-figure sums that were sitting there unclaimed for years.
“The key is having your property professionally assessed by someone who understands exactly what qualifies and how to structure the claims properly. Simple checks can make a real difference. These aren’t complicated processes, but they require knowing what to look for. Most people are amazed at what they discover when they take the time to review their tax position properly.”
