Capital Allowances

The Capital Allowances regime allows businesses to claim tax relief in respect of qualifying expenditure incurred on assets used within a trade.  There are several different types of allowances available at different rates.  Depending upon the nature of the asset will depend upon which allowances can be claimed. 

Who Can Claim? 

Any UK businesses can claim capital allowances, whether that be a Sole Trader, Partnership or Limited Company.  A claim for capital allowances is made in the accounting period in which the expenditure is incurred and is deducted from taxable profits, saving tax at either 20%/40%/45% for sole traders and partnerships or at 19% for limited companies. 

What expenditure qualifies? 

Various expenditure can qualify for capital allowances, such as: 

• Plant and Machinery (including alterations to a building to house plant and machinery)
• Fixtures and Fittings – fire alarms, CCTV, fitted kitchens and bathroom suites
• Integral Features –  air-conditioning systems, hot and cold water systems, electrical and lighting systems
• Construction/renovation of non-residential buildings 

How can we help? 

Determining what assets qualify for what allowances can often be extremely complex, especially when multiple assets have been purchased or large refurbishment works have been undertaken.  Here at Armstrong Watson we can help you maximise the total allowances available to claim on expenditure incurred by undertaking a capital allowances review.   

With extensive knowledge and experience of helping clients, our tax consultancy team can assist you in identifying which expenditure will qualify for which allowances and ensure all allowances are included in the claim to maximise any tax saving. 

As well as current year claims, we can also review historic expenditure incurred to identify any unclaimed allowances on which you are able to claim. 

We have delivered many successful claims for numerous clients and would be more than happy to assist where we can.