We can help you and your business to manage tax costs and risks and claim the reliefs and exemptions you are entitled to
Capital allowances provide corporation tax or income tax relief for some, but not all, capital expenditure. Capital allowances are sometimes referred to as “tax depreciation” because accounts depreciation is not tax deductible. The UK’s tax system has a set of specific rules which provide tax relief for a range of assets with varying rates of relief.
Relief for capital allowances stretches from 8% – 100% as a qualifying deduction for tax purposes. In certain circumstances, companies can also unlock cash tax repayments from HMRC to assist with cash flow.
The most obvious forms of relief may not be the most beneficial for the business. For example, you can maximise the relief by understanding the intended use of the asset. It may produce a better outcome than simply understanding the nature or location of the asset.
In order to qualify for plant and machinery allowances, expenditure must be:
Capital allowances are also available for expenditure on:
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