Capital Allowances
A business which spends money on capital assets for use in its business cannot claim a tax deduction for that expenditure. However a tax relief, called a Capital Allowance, may be available for some types of expenditure.
A Capital Allowances claim could give tax relief for the reduction in value of certain capital assets used by a business, by allowing the business to write off the cost of the assets over a number of years against the taxable income of the business.
It is not the bricks and mortar themselves that qualify for the tax relief but rather the integral fixtures and fittings such as lifts, heating systems, air conditioning, cabling, kitchen and sanitary fittings, which may be applicable for a Capital Allowances claim. Old and new commercial premises, fitted-out to let, new constructions, extensions, refurbishments and building alterations may all qualify, following a survey of the inside of the building.
Clients of The Curious Guys are usually surprised by the wide range of assets and expenditure which qualify for Capital Allowances.
Capital Allowances - whether available or not - should be a consideration in the purchase and sale of commercial buildings.
A Capital Allowances claim could give tax relief for the reduction in value of certain capital assets used by a business, by allowing the business to write off the cost of the assets over a number of years against the taxable income of the business.
It is not the bricks and mortar themselves that qualify for the tax relief but rather the integral fixtures and fittings such as lifts, heating systems, air conditioning, cabling, kitchen and sanitary fittings, which may be applicable for a Capital Allowances claim. Old and new commercial premises, fitted-out to let, new constructions, extensions, refurbishments and building alterations may all qualify, following a survey of the inside of the building.
Clients of The Curious Guys are usually surprised by the wide range of assets and expenditure which qualify for Capital Allowances.
Capital Allowances - whether available or not - should be a consideration in the purchase and sale of commercial buildings.
