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.
Capital Allowances in 2018/19
Manufacturing sector CA claims
AIA Claims Increase since 2017/18
The new Super Allowance
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.
Here are some of the ways Azets’ capital allowances specialists support the many clients we work with on a daily basis:
Of course, your business and needs are unique, so get in touch to discuss how we can help today.
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.
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.
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.
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.