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 […]Read more
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 […]Read more
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 […]Read more
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 […]Read more
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 […]Read more
Business Premises Renovation Allowance (BPRA) Case Summary: Senex Investments Ltd v Revenue & Customs 
Release Date: 04 March 2015
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 […]Read more
Capital Allowances Case Summary: Rogate Services Limited v HMRC 
Release Date: 25 March 2014
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 […]Read more
Tax Case Summary: Drilling Global Consultant LLP v HMRC 
Release Date: 11 September 2014
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, […]Read more