Four hidden reasons you could be owed money from HMRC
UK Property owners and businesses across the country could be sitting on unclaimed tax refunds without even knowing it. From missed capital allowances to incorrect council tax bands, one expert is letting the public know that people have unknowingly overpaid the taxman and are entitled to money back.
The issue affects commercial property owners, investors, and businesses who may owe thousands of pounds in refunds. Despite this, most remain unaware 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. We regularly help clients recover thousands in overpaid tax through legitimate claims they had no idea they could make.
In this article we look at the most common reasons people overpay tax, and explain the simple checks that could reveal significant refunds.
The hidden reasons you could be owed money back
The complex nature of tax legislation means that even diligent UK taxpayers can overlook allowances, reliefs, and corrections, potentially missing out on legitimate refunds that could put money 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. Most people assume they’ve paid the right amount, but our experience shows that’s often not the case.
Let’s look at the four most common causes of tax overpayment that could entitle you to a refund.
1) Missed capital allowances on fixtures and fittings
One of the biggest areas where property owners lose out is capital allowances on fixtures and fittings. When you buy or improve a commercial property, items like 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. 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 is particularly valuable for property investors who may have bought multiple properties without realising the full extent of available allowances.
2) Incorrect council tax bands
Residential property owners may be paying more council tax than necessary due to incorrect banding. Properties are valued based on their worth in 1991, but countless homes have been incorrectly assessed or haven’t been adjusted following significant changes.
Properties that have been extended, subdivided, or had their use changed may still be on outdated bands. Even small reductions in council tax bands can save hundreds of pounds annually, and successful challenges can result in refunds dating back years, subject to statutory appeal or correction periods.
3) Unclaimed property and business reliefs
There are numerous reliefs available that a lot of property owners and businesses simply don’t know about. Small business rates relief, empty property relief, and charitable reliefs are frequently unclaimed.
Business owners often focus on their core operations and assume their accountant has claimed everything possible. But even experienced accountants can miss specialist reliefs, particularly around property taxation.
Some reliefs are time-sensitive, so acting quickly is important. However, others can be claimed retrospectively, making it worth reviewing past tax positions.
4) Errors in past tax returns
Simple errors in past tax returns can result in overpayment. Incorrectly categorised expenses, missed deductions, or computational errors can all lead to paying more tax than necessary.
Professional fees, maintenance costs, and financing expenses are commonly miscategorised or omitted entirely. While these might seem like small amounts individually, they can add up to significant overpayments over multiple tax years.
How to check if you’re eligible
Start 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 explains.
For capital allowances, look for any fixtures, fittings, or equipment purchases that weren’t claimed. For council tax, check whether your property’s characteristics match its current band. For business reliefs, review 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. 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 extra charge, not an overpayment refund.
Take the time to review your tax position
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.
Capital Allowance Review Service partners with UK commercial property owners, investors, advisors, and accountants to uncover overlooked tax reliefs through expert capital allowance claims. They offer end-to-end support, from free initial assessments and detailed property surveys to technical tax-efficient claim preparation and HMRC liaison.
A multidisciplinary team including chartered surveyors, tax specialists, property lawyers, and ex-HMRC inspectors leverages extensive experience to deliver a 100% success record. They help clients maximise savings, recover retrospective tax, and navigate complex legislation with clarity and confidence.
