Companies, businesses and individuals are all potentially eligible to claim capital allowances which can be a highly effective way of reducing the cost of investment by reducing taxable income or creating taxable losses to utilise.
Although certain qualifying expenditure is easy to identify, such as plant and machinery, often claims are not maximised due to the timing or correct identification of the expenditure.
How can we help?
We work closely with our clients to fully understand their short and long term plans so that we can identify and maximise potential capital allowance claims as early as possible.
One of the main areas where capital allowances are under claimed is commercial property.
Virtually all commercial properties will include integrated fixtures which qualify for tax relief. Historically these amounts either have not been claimed or have been claimed more than once. This prompted H M Revenue & Customs to amend the rules to ensure that it is now mandatory to pool qualifying expenditure before the sale of commercial properties. Failure to do this post April 2014 will lead to the loss of any future capital allowance claim on the commercial property.
Examples of integral features include:
- An electrical system (including a lighting system),
- A cold water system,
- A space or water heating system, a powered system of ventilation, air cooling or air purification, and any floor or ceiling comprised in such a system,
- A lift, an escalator or a moving walkway,
- External solar shading.
We work closely with our clients to fully understand their short and long term plans so that we can identify and maximise potential capital allowance claims as early as possible
Enhanced Capital Allowance
Enhanced capital allowances are also available for energy efficient technologies to encourage businesses to invest in eligible energy-saving equipment.
Whether you own a commercial property, are thinking about refurbing it or are potentially looking to acquire new premises we can help identify historically unclaimed capital allowances. It is now uncommon for 25% of the cost of a property to qualify for capital allowances.
To find out how we can help you, please contact Mark Squibb on 01384 456 780 or email firstname.lastname@example.org.
ACA FCCA CTA
Mark has more than 13 years of experience as an accountant and tax practitioner and is a member of the Chartered Institute of Taxation (CIOT) and a fellow of the Association of Chartered Certified Accountants (ACCA)