Capital allowances are a valuable form of tax relief, but we find that many businesses are not claiming their full entitlement. This is sometimes because relief can be hidden within a commercial property.
Identifying capital allowances opportunities
Opportunities can arise in a number of ways:
- When expenditure is incurred on building, refurbishing, fitting out or extending a commercial property.
- When buying or selling a commercial property.
If you are unaware of the capital allowances available to businesses in the above situations, you will most likely be losing out on valuable tax relief.
Tax Reliefs Available
The amount of capital allowances tax relief available depends on the type of expenditure incurred and when it was incurred, with the rates often being the subject to change by the Chancellor in his annual Budget.
Tax relief can vary from 130% for the new ‘super deduction’ that was announced in the Budget in March 2021 (for expenditure between 1 April 2021 and 31 March 2023) down to as low as 6% for expenditure on integral features such as lighting.
How can HURST help?
If you are:
- considering buying new plant or machinery and would like to know what tax relief is available and the timing of the relief, or
- buying / selling a commercial property, or
- trying to ensure capital allowances are claimed on a property you already own,
Contact our specialist team at HURST and we will be pleased to help you identify all available relief.
In some cases, claims can be backdated to previous periods in order to generate an immediate tax refund, as well as future tax savings.