Unlocking Cash – How to Maximise Through Capital Allowances

By : Julie Davies March 25, 2020 No Comments

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 […]

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

By : Julie Davies December 3, 2019 No Comments

UPPER TIER TRIBUNAL TAX CHAMBER

There have been a run of cases heard before the courts
relating to civil and structural works, with debate about what constitutes a
structure as opposed to plant.

In August 2019, the FTT heard The Cheshire Cavity Storage 1
Limited v Anor case. This concerned a
taxpayer who operates gas storage facilities and created […]

Underground Gas Storage Cavities & Capital Allowances

By : Julie Davies November 20, 2019 No Comments

CHESHIRE CAVITY STORAGE 1 LIMITED and EDF ENERGY (GAS STORAGE HOLE HOUSE) LIMITED V HMRC [2019]

FIRST TIER TRIBUNAL TAX CHAMBER (FTT)

Background

Both
appellants were companies in the EDF Energy PLC Corporate Group and they
operate gas storage facilities on adjoining site is Cheshire. The Companies
used underground cavities filled with brine to store gas and incurred costs […]

Groundhog Day – HMRC Loses Appeal To Upper Tax Tribunal: Late Capital Allowances Claim

By : Julie Davies August 8, 2019 No Comments

Further to our article titled ‘The Lazarus Impact – Making very Late Capital Allowances Claims’ where the First Tier Tax Tribunal allowed a pub company (the taxpayer) to file a very late capital allowances claim. HMRC appealed the First Tier Tax Tribunal’s decision at the Upper Tax Tribunal.

The taxpayer won again and HMRC
lost the […]

Definition of what Constitutes Qualifying Expenditure for BPRA Claims

By : Julie Davies May 9, 2019 No Comments

LONDON LUTON HOTEL BPRA PROPERTY FUND LLP V THE COMMISSIONERS FOR HMRC

FIRST TIER TRIBUNAL TAX CHAMBER

This is a significant case heard by the First Tier Tribunal
(FTT) concerning a BPRA claim and the definition of qualifying expenditure ‘on
or in connection with’. HMRC have
typically considered that BPRA claims often include items of expenditure that
they deem […]

Structures and Buildings Allowances – Update

By : Julie Davies April 18, 2019 No Comments

Following the announcement in October 2018 of the
introduction of a new capital allowance for expenditure incurred on non-residential
structures and buildings (SBA), HMRC have now published detailed secondary
legislation for consultation.

Comments are invited by 24th April 2019, with an
overall response to the consultation published in May 2019.

Once finalised, it will be introduced as a Statutory
Instrument and the […]

Resolving Capital Allowances Figures where Buyer and Seller are unable to agree quantum of Allowances on a Nursing Home

By : Julie Davies March 15, 2019 Comments Off

GLAIS HOUSE CARE LIMITED V THE COMISSIONER FOR HER MAJESTY’S REVENUE & CUSTOMS [2019]

UKFTT 0059 (TC)

Summary

HMRC has lost an interesting capital allowances case where it tried to limit the Taxpayer’s purchase price attributable to second-hand fixed plant and machinery to £1. The tax payer had claimed allowances of £318,792 based […]

Capital Allowances Plant and Machinery in a Civil Engineering Context Update

By : Julie Davies February 28, 2019 Comments Off

UPDATE ON CASE

SSE GENERATION LIMITED V THE COMMISSIONERS FOR HMRC

HMRC TO CHALLENGE THE FIRST TIER TRIBUNAL TAX CHAMBER RULING

HMRC have decided to challenge the ruling given by the First Tier Tax Tribunal which they considered was largely in favour of the taxpayer. The case is to be heard by […]

Capital Allowances: HMRC Clutching Straws on a Grain Storage Structure

By : Julie Davies February 13, 2019 Comments Off

HMRC clutching straws on a grain storage structure :

Stephen May and another v HMRC [2019] UKFTT 32 (TC)

Overview

There has been a capital allowance case to determine whether a facility for drying, conditioning and storage of grain is a “silo provided for temporary storage” within the meaning of Capital Allowances Act […]

Capital Allowances Plant and Machinery in a Civil Engineering Context

By : Julie Davies October 3, 2018 Comments Off

SSE GENERATION LIMITED V THE COMMISSIONERS FOR HMRC

FIRST TIER TRIBUNAL TAX CHAMBER

This is the first significant capital allowances case since IRC v Barclay, Curle & Co Ltd [1969] where expenditure on capital allowances has been considered for civil engineering type expenditure.

Of particular interest is just how far […]