Capital allowances are complicated, so professional advice is both essential and worthwhile 

If you’re looking to make tax savings from your property expenditure, you need to get to grips with capital allowances offered by HMRC.

But understanding the changing rates and how to maximise them is a time-consuming and relentless task, particularly when the allowances are so project-specific and therefore very few people have the knowledge and experience of applying them on a regular basis.

From identifying qualifying plant and machinery elements (heating, electrics, fittings) to applying the correct level for the type of project (commercial construction, alterations, refurbishments), there’s a host of factors to take into account.

That’s why our specialist team makes capital allowances their focus, combining skills in tax and property to prepare claims that will generate the greatest possible savings in the least possible time.

  • Benefit from genuine expertise provided by tax-qualified chartered surveyors with extensive experience in all aspects of capital allowances.
  • Receive robust and fully supportable claim documents in a format that goes beyond HMRC disclosure requirements.

Get in touch with one of our capital allowances experts today for a free, confidential consultation.

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£99b

Capital Allowances in 2018/19

£12.2b

Manufacturing sector CA claims

12%

AIA Claims Increase since 2017/18

130%

The new Super Allowance

Join the many Azets clients who’ve made considerable tax savings 

Azets’ capital allowances and tax specialists provide advice to individuals and businesses on how to maximise tax savings when undertaking property projects such as new construction work or when buying existing buildings. Completed the project? No problem. We frequently make retrospective claims.

We’ve helped many clients to benefit from considerable additional tax savings when constructing or acquiring a property. Our service is fast and hassle free, with very little information needed to produce results.

With a rare combination of skills in surveying and tax, our expert team will identify, quantify, and maximise the qualifying elements on projects, even where little or no cost information exists.

  • Our expert team will start by providing you with a free-of-charge proposal including an estimate of your tax savings.
  • After an assessment of your project, you’ll then receive a full written report identifying ways you can make best use of the allowances available, which will usually be included in your tax returns.

Our service is designed to save you tax in a number of areas 

Here are some of the ways Azets’ capital allowances specialists support the many clients we work with on a daily basis:

  • Claims for major new builds, extensions, and refurbishments. Big projects often suffer from a lack of cost information from contractors, meaning valuable allowances are missed. We can produce detailed and effective capital allowances claims, even where no cost information exists.
  • Claims for property acquisitions. The price of a property will partly depend on its qualifying assets – however, by advising on elections in contracts and preparing specialist tax valuations, we can often ‘unlock’ the qualifying element from the purchase price.
  • Support with conveyancing to make sure entitlement issues are addressed. Thanks to further tightening of tax legislation, capital allowances can be permanently lost if contracts do not include appropriate elections or clauses. We make sure our clients’ capital allowances are safe.
  • Capital allowances claims for the purchase and renovation of furnished holiday lets, ensuring our clients shelter taxable rental income.
  • Land remediation claims for expenditure on cleaning up contaminated land and buildings.
  • Dealing with HMRC enquiries into capital allowances claims.

Of course, your business and needs are unique, so get in touch to discuss how we can help today.

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What is the Super Deduction?

The spring 2021 budget provided a somewhat unexpected boost for companies planning to invest in new assets with the introduction of “Super Capital Allowances”.

These new allowances are in addition to the existing Annual Investment Allowance (AIA) which, until 31 March 2023, permits 100% relief for up to £1m of expenditure incurred each year on qualifying plant and machinery assets. 

The new allowances are only available to companies and can be claimed for qualifying expenditure incurred between 1 April 2021 and 31 March 2023.  

Exclusions: 

  • Sole traders, partnerships and LLP’s.
  • Expenditure incurred under a contract entered into before 3rd March 2021.
  • Not available for second-hand assets.

The Super Deduction explained

The super deduction is a new 130% first year allowance for expenditure on main pool qualifying assets such as machinery, furniture, fittings, computers etc.  Previously relief was at 18% per annum. The enhanced Special Rate is a new 50% first year allowance for Special Rate assets including integral features in buildings such as electrical, water and heating systems.  Previously relief available at 6% per annum.

The Super Deduction explained Image

Issues to be aware of with the Super Allowance

Disposal proceeds for the sale of assets where Super Allowances have been claimed will be taxed in full as a balancing charge.

Any sale of a Super Deduction asset before 31 March 2023 will be subject to an enhanced disposal value calculated by a multiple of 1.3.  A tapered multiple is then applied to disposals in accounting periods which staddle 1 April 2023.

Any sale of an Enhanced Special Rate asset will trigger a balancing charge equal to 50% of the disposal value.

Issues to be aware of with the Super Allowance  Image

Get in touch with our experienced tax advisers today

Whether you’re undertaking or have already undertaken a construction project or property acquisition, we can help.

We regularly work with businesses and individuals who are typically spending in excess of £200,000 on building projects, helping them to maximise their capital allowances and make significant tax savings.

Get in touch with our friendly, professional capital allowances team now.

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