What are Capital Allowances?
Y BODOLION
Capital Allowances are a valuable tax relief available when a business or property investor purchases fixed assets. They are an entitlement but must be claimed by taxpayers via their annual tax returns submitted to HM Revenue & Customs (‘HMRC’).
HAWLIADAU
If you own a eiddo masnachol neu llety gwyliau wedi'i ddodrefnu in the UK and are a trethdalwr y DU, claiming Capital Allowances will reduce your tax payable and/or secure you a tax refund.
Gellir hawlio Lwfansau Cyfalaf ar y gwariant eiddo canlynol:
- adeiladu newydd, adnewyddu ac estyniad
- prynu eiddo ail-law
- gosodiadau gwyliau wedi'u dodrefnu
- tir halogedig
- research and development expenditure
Depreciation in the Accounts is not a tax deductible expense. Consequently, when tax computations are prepared depreciation is replaced by a claim for Capital Allowances providing tax savings to the taxpayer.
RATES AND WRITING DOWN ALLOWANCES (‘WDA’S’)
Mae’r rheolau ar Lwfansau Cyfalaf wedi’u cynnwys yn Neddf Lwfansau Cyfalaf 2001 (‘CAA 2001’) gyda hawliadau’n cael eu gwneud ar wariant ar offer neu beiriannau, gan gynnwys nodweddion annatod.
A taxpayer can claim first year allowances (‘FYA’) of 50% or 100%, an annual investment allowance (‘AIA’) of up to £1m and WDA’s on the balance available at 6% or 18% depending on the nature of the expenditure.
Gan y gellir hawlio rhyddhad treth o o leiaf 25% o gost eiddo yn aml, gall Lwfansau Cyfalaf gael effaith sylweddol ar yr arenillion buddsoddiad ar eiddo.
CYFYNGIADAU
Ni all datblygwr hawlio Lwfansau Cyfalaf os yw'r eiddo yn stoc masnachu neu gan endidau nad ydynt yn talu treth megis elusennau, cronfeydd pensiwn ac adrannau'r llywodraeth.
