News

Transitioning Rules from Super Deductions to Full Expensing

Transitioning Rules from Super Deductions to Full Expensing – Accounting Periods Straddling 31 March 2023

The 2 year window for claiming the 130% Super Deduction for general rate plant and machinery expired on the 31 March 2023 and was replaced by 100% Full Expensing.

Companies finalising their tax returns that do not have a […]

Capital Allowances Tax Case Regarding Camping Pods

First Tier Tribunal Decision – Capital Allowances Tax Case Regarding Camping Pods

The First Tier Tribunal (FTT) has published its decision on the case of Acorn Venture Limited v HMRC [2023] UKFTT 995 (TC).

It concluded that camping pods used by school children as part of school residential adventure holidays did qualify as plant […]

SUPREME COURT RULING

COMMISSIONERS FOR HMRC V SSE GENERATION LTD

This case is an intriguing example of how a long running dispute is appealed and taken before the different stages of the Courts of Law to establish how to apply the legislation correctly. 

Between 2006 and 2009, SSE Generation Limited constructed a hydro-electric power station in Gledoe, […]

Spring Budget 2023

Full expensing has arrived for companies, (well politicians are expert at full expensing). General pool plant and machinery (18% wda) incurred from 1 April 2023 to 31 March 2026 will attract 100% first year tax relief without any cap. For integral features (6% wda) this will attract 50% allowance in the first year with […]

Tax Case December 2022 Update

Court of Appeal Decision – Capital Allowances Tax Case Regarding Disputed Expenditure on the Structures of an Enrichment Plant

The Court of Appeal (Civil Division) has published its decision on the case of Urenco Chemplants Limited and Urenco UK Limited v HMRC [2002] EWCA CIV 1587.

It overturned decisions made by the Upper […]

GROWTH PLAN 2022: CAPITAL ALLOWANCES

Chancellor Kwasi Kwarteng announced today the following which will have implications for capital allowances:

Annual Investment Allowance (AIA)
AIA ‘permanently’ set at £1m instead of reducing to £200k. Over the next 5 years this is estimated to save Tax payers £5bn.

Corporation Tax
19% Corporation tax rate retained. By scrapping the proposed tax increase to 25% […]

Reforming the UK’s Capital Allowance System

Overview

The Government has recently conveyed their motive to bring further reform to UK Capital Allowances (CAs) as the super-deduction scheme is set to come to an end in March 2023. The general aim of this reform is to assist UK business investment and promote economic growth within the UK following the pandemic slump. […]