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What can I claim capital allowances for?
Your business can claim capital allowances on various expenditures including vehicles (cars, vans, trucks) and equipment required to complete work.
R&D costs are also part of the capital allowances that can be claimed. Two common capital allowance types claimed by UK businesses are annual investment allowance (AIA) and the first-year allowance.
Items which cannot be claimed through capital allowances include structural parts (doors, windows), stationery, leased items and items used for entertainment.
Many Accountancy Practices work with Capital Allowances on a daily basis.
However, identifying Embedded Capital Allowances from the original purchase price takes a specialist team with a detailed knowledge of statute and case law, as well as a high level of expertise at the surveying stage to break down the qualifying and non qualifying elements of a building.
From our Solihull office, CapEx Tax have collaborated with some of the leading accountancy practices on a daily basis to deliver in our specialist area of Capital allowances on behalf of them.
Solicitors are under pressure to complete more and more detail at the conveyancing stage.
This includes the need to complete section 32 of the CPSE (Commercial Property Standard Enquiry). Section 32 deals with Capital Allowances and whether the current owner has claimed for any ’embedded plant and machinery’ within the building.
CapEx Associates provide the perfect solution to this by using our team of capital allowance experts to complete the Capital Allowance section of the CPSE on your behalf. We do this whether you are acting for the buyer or seller, regardless of your business location within the UK.
Property developed and held as trading stock will not qualify for capital allowances claims. However, capital allowances can be claimed if the property is subsequently moved to fixed asset investments on the balance sheet.
Capital allowances must be claimed in the accounting period you bought the item if you want to claim the full value under:
- annual investment allowance
- first year allowances
If you do not want to claim the full value, you can still claim part of it using writing down allowances at any time as long as the item is in your ownership.
If you buy something under a hire purchase contract you can claim for the payments you have not made yet when you start using the item. You cannot make a claim on the interest payments.