INDEPENDENT CAPITAL ALLOWANCES SPECIALISTS

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Capital Allowances Case

Cheshire Cavity Storage 1 Limited & EDF Energy (Gas Storage Hole House) Limited v The Commissioners for HMRC

A recent case heard by the Upper Tier Tribunal (UTT) follows a trend of capital allowances claims being taken to Court where the disagreement between taxpayers and HMRC revolves around what is deemed to be plant (and so qualifies […]

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Super Capital Allowances Changes Budget 2021

The Chancellor, Rishi Sunak’s budget announcement should help turbo-charge capital investments in the UK with new super capital allowances costed at £29bn over the next 4 years. The extension of loss relief carry-back to 3 years is also positive and makes claiming capital allowances a potent tool in reducing corporation tax and triggering repayments of […]

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Capital Allowances Case: Update on SSE Generation Limited v The Commissioners for HMRC

PLANT AND MACHINERY IN A CIVIL ENGINEERING CONTEXT      

The long running dispute between the taxpayer (SSE Generation Limited) and HMRC in relation to what constitutes plant in the context of a hydroelectric power plant and civil engineering project has reached a conclusion in the Court of Appeal. 

The case had previously been heard through the First […]

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Freeports & Capital Allowances – Boosting the Economy Through Investment

As part of an ongoing consultation process, HMRC is considering the creation of Freeports across the UK.  These Freeports will be located around air, sea and rail ports and will be governed by different customs and tariff status.   Local authorities, operators of ports, airports and rail, and businesses will bid to create a designated Freeport, […]

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Capital Allowances Fact Sheet – Offices

Both owners and occupiers of office buildings can claim substantial capital allowances but this opportunity is often missed. This can be due to confusion over the capital allowances rules changes or because non-specialist solicitors, accountants and tax advisors do not recognise the full potential of available allowances. Frequently, construction cost information can be unhelpful and […]

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Capital Allowances Article: Revenue or Capital – A Concrete Decision

Steadfast Manufacturing and Storage Limited (SM&S) successfully appealed against HMRC for a revenue amendment of £13,428.20 for the accounting period ending 31 October 2015. The appellants also appealed a consequential amendment of £1,489.80 for the accounting period ended 31 October 2014. The amount initially disputed by HMRC related to expenditure incurred on a yard used […]

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Unlocking Cash – How to Maximise Through Capital Allowances

When businesses suffer catastrophic blows to their cashflow, as many are
experiencing now, it is important to explore every opportunity there is to
raise cash.

Claiming capital allowances provides such an opportunity.

Amending Tax Returns to Claim
Historic Expenditure and Reduce Tax Payable Now

Reducing tax bills is an easy way to retain cash and it is vitally
important now to maximise […]

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Lovell Consulting Commentary on March 2020 Budget: Capital Allowances Changes

The Chancellor, Rishi Sunak’s ‘get it done’ approach did not really extend to capital allowances. There was a modest lift to Structures and Buildings Allowances.

The capital allowances changes are below:

The Structures and Buildings Allowances was introduced in Finance Act 2019 to encourage the construction of new or renovation of existing non-residential structures and buildings. […]

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Urenco V HMRC Capital Allowances Tax Tribunal

Overview

There has been a recent
First-Tier Tribunal (FTT) case on whether Urenco (Appellant) is entitled to
claim capital allowances in respect of the disputed expenditures on the
construction of Tails Management Facility (TMF) at a nuclear site. Total
project cost is circa £1bn. Most of the expenditure qualifying for capital
allowances has been agreed. However, HMRC (Respondent) contends disputed
expenditures of […]

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