Tag: capital allowances
Court of Appeal Decision: Good News for Pre-Construction Development Costs
A recent Court of Appeal decision has delivered excellent news for businesses involved in major construction and infrastructure projects. The ruling confirms that pre-construction development costs such as environmental studies, design work, and surveys can qualify for capital allowances in many cases. This decision could open the door to significant additional tax relief for commercial…
Capital Allowances for Commercial Property Owners
Running a commercial property comes with many costs – but did you know there’s a hidden tax relief that could significantly reduce your tax bill? Capital allowances are a government-approved way for property owners to claim tax relief on certain expenditures, yet many businesses don’t even realise they qualify. Why Are Capital Allowances Overlooked? Many…
Capital Allowances for Accountants
As an accountant, you’re always looking for ways to help your clients save money and improve their tax efficiency. One area that is often overlooked is capital allowances. By ensuring your clients are fully utilising these tax reliefs, you can add significant value to your services and strengthen client relationships. What Are Capital Allowances and…
Capital Allowances for Commercial Property Owners
A Guide for Commercial Property Owners Introduction Capital allowances are one of the most overlooked tax relief opportunities available to commercial property owners in the UK. If you own a commercial property, you could be entitled to claim thousands of pounds in tax relief – but many businesses fail to take full advantage of this.…
Capital Allowances and Furnished Holiday Lettings (‘FHL’s’)
Do you own Furnished Holiday Lettings?… DON’T MISS OUT! In their Spring Budget, the conservative government announced plans to abolish the FHL’s tax regime from April 2025. However, there is still time for FHL owners to prepare and submit capital allowances (‘CA’) claims to reduce their tax liabilities on current and historic qualifying expenditure. If…
Update from Spring Budget 2024 Furnished Holiday Lets (FHL)
Following the recent Spring Budget announcements, the government has declared its intention to end the furnished holiday lettings (FHL) tax framework. This move aims to discontinue existing tax privileges for landlords operating short-term furnished holiday properties, favouring longer-term residential property rentals. Among the current tax advantages, not limited to FHL proprietors, are deductions for interest…
Clarification by HMRC on capital allowances rules for partnerships
HMRC has recently updated its guidelines to clarify that a partnership containing a corporate member is eligible to assert capital allowances typically reserved for corporations. This encompasses allowances such as the super deduction and full expensing. The computation of a partnership’s profits is contingent upon the tax regulations applicable to its members: HMRC has revised…
Freeports and Investment Zones
With Freeports now confirmed in Wales (Celtic Freeport covering Milford Haven and Port Talbot, and Anglesey Freeport in North Wales), and an Investment Zone confirmed for Northeast Wales, this guide highlights the key tax benefits available to businesses operating in or relocating to these zones. According to UK government guidance, eligible companies can benefit from…
Full expensing on Capital Allowances made permanent
In March 2021, when the decision to raise the corporation tax rate to 25% was initially disclosed, a concurrent introduction of the super-deduction was made aimed to mitigate the impact of this transition. However, as the super-deduction concluded on March 31, 2023, amidst persistent challenging economic conditions in the UK, there was widespread anticipation for…
Annual investment allowance (‘AIA’)
The AIA is generally aimed at small to medium sized businesses and investors and enables Capital Allowances of 100% to be claimed on most types of purchases of plant or machinery, excluding cars.In recent years HMRC has tinkered with the AIA and up to December 2015, maximum rates have varied between £25,000 and £500,000. From…
