Capital allowances are the only form of tax relief available to UK taxpayers on their commercial property-related expenditures.
Despite their long history dating back to 1878, our experience has shown that many claims are frequently overstated and as a result, taxpayers miss out on significant savings.
At Bonham & Brook, our experts have the knowledge and expertise to help you identify your full entitlement and make the most of your tax savings. Whether you are a company or an individual, we will help you navigate the complexities of capital allowances and claim eligible expenditures.
Capital allowances allow taxpayers to claim plant and machinery at a rate of 12.5% over an eight-year period, while most industrial buildings can save 4% over a 25-year period.
Eligible expenditures for capital allowances include equipment used for business, costs of dismantling plant and machinery, integral features within a property, and more.
Plant and machinery refers to individual items within a property that make the property useable and workable.
This includes trade-specific machinery, vehicles, and even fixtures like fitted kitchens and complete bathrooms. If claimed in time, these costs can be deducted in full from your profits before taxes through the Annual Investment Allowance.
You can only claim for integral features within a property if the purchase of those items or the property was made after 2008 and the asset is still owned today.
To qualify for capital allowances, a company or individual generally needs to own the asset and be liable to UK tax. Spending on the installation of equipment and the associated costs of demolishing a building that is kept as a fixed asset (as opposed to trading stock) qualifies for capital allowances.
The following is considered eligible for capital allowances:
At Bonham & Brook, our process for claiming capital allowances involves the following steps:
Our clients can be confident that we can prove fully maximised and compliant capital allowances/tax depreciation applications thanks to the number of claims we have submitted.
Since the outset, we have created a distinctive claim process that has been put through its paces by a considerable number of HMRC audits. We are unmatched in terms of expertise, claim fulfilment and negotiation experience.
The following are some areas in which our team has substantial practical experience: