Being a highly-specialised area of tax, it is understandable that the majority of accountants often might miss the opportunity to claim capital allowances for their clients.

Many of our accounting clients are familiar with allowances on items of plant and machinery. However, the most valuable allowances relate to fixtures that form part of the building – but these tend to be missed. Depreciation of fixed assets charged in the accounts is not allowed as a deduction in computing taxable profits. Capital allowances may be given instead.

Working with you

It is more important to consider capital allowances today than in the past due to legislative changes. Tax relief can now be claimed for a greater portion of building costs and is realised at a quicker rate than with the old legislation.

We work alongside you to claim capital allowances for your clients that own commercial property. By also providing regular training, we enable you to be proactive on capital allowances, delivering a bottom-line benefit to your clients.

Accountants often assume a capital allowances claim will affect the client’s capital gains position on profitable disposal of the property. However, this is not the case.

Taxation of Chargeable Gains Act 1992, section 41 states:

“Section 39 shall not require the exclusion from the sums allowable as a deduction in the computation of the gain of any expenditure as being expenditure in respect of which a capital allowance or renewals allowance is made.”

The obligation to address capital allowances within two years of purchase of the asset means a proactive approach is required to realise the tax benefit for your clients.



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