Capital Allowances Tax Relief is available on assets acquired for use by your business such as buildings, machinery and specific ancillary equipment. The legislation allows the deduction of some (or all) of the expenditure incurred from your taxable profits, resulting in a lower tax liability and, in some cases, a refund of tax previously paid over.
When looking to submit a fully maximised Capital Allowances claim, it’s important to engage with specialists who are knowledgeable with the prevailing legislation to ensure the levels of compliant expenditure recognised are as accurate as possible, so ensuring that you receive the maximum benefit permissible.
And given the number of allowances permissible under the current legislation – Annual Investment Allowance (AIA), First Year Allowance (FYA) and Enhanced Capital Allowance (ECA) to name a few – correct asset classification is essential in determining the proportion of expenditure available for tax relief and whether the allowance is fully deductible in a single tax year, or apportioned over several consecutive periods.
Unsure whether you qualify, and how to calculate the value of your Capital Allowances claim?
If so, let Innovation Tax guide you through the process, identifying your qualifying assets and calculating the amounts of expenditure attracting relief. Furthermore, we’ll produce a bespoke claim report for you to retain for future reference which clearly outlines the amount (and timing) of the relief available, supporting your accountant in filing your amended tax return(s) with HMRC.