OTS – Report on Proposed Capital Allowances Simplification

By : Julie Davies June 22, 2018 Comments Off

The long awaited report by the Office of Tax Simplification (OTS) into the proposed simplification of capital allowances was published on the 15th June 2018. It extends to 88 pages but concludes that whilst an accounts based depreciation system would be attractive, the benefits gained would be completely outweighed by the disruption suffered by businesses […]

Capital Allowances in the Retail Sector

By : Julie Davies November 9, 2016 Comments Off

Retail sector owners are often overlooking substantial tax allowances. This happens because their accountants and tax advisors may only pick up simple & obvious plant and machinery (P&M) items, such as chairs, tables, shop display and fittings. When fitting out or refurbishing a retail unit, the construction expenditure is generally not very well detailed for capital […]

Claiming Capital Allowances and / or Repairs

By : Julie Davies July 6, 2016 Comments Off

As acknowledged in HMRC’s Capital v Revenue Expenditure Toolkit, ‘there is no single, simple test that can be applied to decide which items are capital expenditure and which are revenue’

Differentiating between capital and revenue expenditure can be complex and in the absence of any definitive direction from HMRC, consideration has to be given to legislation […]

Drafting For Purchase Contracts And CPSE Capital Allowances Responses

By : Julie Davies July 15, 2015 Comments Off

Since April 2014 the legislation has been substantially tightened for capital allowances when buying commercial property.

The allowances can be significant and often represent around 10%-25% of the purchase price of the property. There are standard Commercial Property Standard Enquiries (CPSEs) for use by the property lawyers, intended to establish the extent of any allowances available […]

Capital Allowances – Demolition Costs

By : Julie Davies May 20, 2015 Comments Off

Capital Allowances: Demolition Costs

The costs of demolition may qualify for capital allowances in accordance with Section 26 CAA2001. No capital allowances are available for the costs relating to demolishing building structure, i.e. concrete, steelwork. However the costs relate to demolishing plant and machinery is deemed to be qualifying for capital allowances. The costs of the […]

Business Premises Renovation Allowance (BPRA) Case Summary: Senex Investments

By : Julie Davies April 2, 2015 Comments Off

Business Premises Renovation Allowance (BPRA) Case Summary: Senex Investments Ltd v Revenue & Customs [2015]

Release Date: 04 March 2015

Overview

Whether a former church is a qualifying building for the purposes of BPRA.

The FTT found that church was a qualifying building for BPRA as it had last been used as a “trade, profession or vocation” under […]

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Capital Allowances Case Summary – Rogate Services

By : Julie Davies January 12, 2015 Comments Off on Capital Allowances Case Summary – Rogate Services

Capital Allowances Case Summary: Rogate Services Limited v HMRC [2014]

Release Date: 25 March 2014

Overview

Whether expenditure on constructing a Car Valeting Bay is plant.

It was held by the First-Tier Tax Tribunal that the valeting bay was not plant. The building does not perform a function, it was a place of work which does not amount […]

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Capital Allowances Case Summary – LLPs and AIA

By : Julie Davies September 26, 2014 Comments Off on Capital Allowances Case Summary – LLPs and AIA

Tax Case Summary: Drilling Global Consultant LLP v HMRC [2014]

Release Date: 11 September 2014

Overview

Whether an LLP, whose members are an individual and a limited company is a qualifying person entitled to claim the annual investment allowance (AIA) within the meaning of s38A(3)of CAA2001.

It was held by the First-Tier Tax Tribunal that a mixed LLP, […]

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