What is capital allowances?
This is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit, the value of their qualifying capital expenditure on assets such as equipment or buildings.
Capital allowances can be claimed not only by companies, but also partnerships, individuals and overseas investors which carry out qualifying business activity such as a trade, property business, etc.
What are the recent changes in capital allowances tax relief?
The UK government has continued to incentivise businesses which pay tax in the UK to claim capital allowances tax relief.
A number of changes to the scheme has continued to make capital allowances worthwhile for businesses to benefit from. Amongst these changes include the welcomed extension of the £1 million temporary increase of the annual investment allowances until March 2023 and the introduction of the temporary super-deduction allowances until March 2023. There is also the introduction of the enhanced capital allowances relief on qualifying capital expenditure at designated Freeport tax sites, until 30 September 2026.
How can we help you maximise cash savings benefits?
Our capital allowances team of qualified specialists with diverse experience and multidisciplinary construction and financial skills leverage on their expertise to maximise cash saving benefits for businesses who incur capital expenditure.
They provide a whole development lifecycle capital allowances advice from planning to design, construction, occupation and subsequent disposal or sale. This includes property sale and purchase transaction advise to support either the vendor to retain their capital allowances, or for the buyer to benefit from capital allowances on the purchase price paid.
Our services include but are not limited to:
- Scoping exercise to explore what tax relief may be available to the business;
- Due diligence to confirm scope and establish entitlement to claim;
- Site visit to survey the assets where possible, in order to better understand their attributes such as construction technology and building engineering, as well as business use and function.
Your dedicated consultant thereafter carries out a detailed analysis to identify qualifying expenditure and maximise the tax relief available. They will subsequently prepare and issue the complete report which can be filed with HMRC, along with the tax return in order to support the claim. Leyton’s teams also go the extra mile in assisting the business with information in connection with the filing and any relevant post-filing requests.
Our process
Scoping
Exploring availabitlity of tax credits
Due diligence
Confirming scope and establishing entitlement to claim
Site visit
Surveying the assets where necessary
Detailed analysis
Identifying expenditure
Reporting
Preparing and issuing claim report
Filling support
Assisting with filing and post filing information
Claim time scale
4-6 weeks (depending on how responsive the client is to our queries)
Client involvement
2-5hrs
What are the next steps to benefit from Capital Allowance tax savings ?
Are you planning to, or have you already incurred any commercial building or large-scale industrial and engineering plant related capital expenditure which may fall under any of the following categories?
- New Construction
- Refurbishment Work
- Fit Out Works
- Buying Buildings
Please let us know as we can help you unlock and maximise cash tax savings and improve your business cash flow.
