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Case Law – Gunfleet Sands v HMRC New Ruling

A Court of Appeal hearing on the Gunfleet Sands v HMRC case has given rise to substantial additional tax reliefs on costs, previously interpreted as non qualifying for Capital Allowances by the First-Tier Tribunal.

20 Mar 2025

Written by: David Gibson

Case Law – Mersey Docks & Harbour Company v HMRC

HMRC continue to raise enquiries and to disallow items of plant that could be used for a claimant’s trade. This case relates to the quay wall at the Port of Liverpool

14 Jan 2025

Written by: Clive Curd

Case Law – Changi Airport Loses $273m Tax Break

Changi Airport Group (CAG) made Capital Allowances claims over three years totalling $272,575,162 on assets including the runways and taxiways but lost with the Court of Appeal determining that the assets were structures and not tools of trade.

20 Dec 2024

Written by: Tom Lo

Archive

 

Latest News

Case Law – Gunfleet Sands v HMRC New Ruling

20 Mar 2025

A Court of Appeal hearing on the Gunfleet Sands v HMRC case has given rise to substantial additional tax reliefs on costs, previously interpreted as non qualifying for Capital Allowances by the First-Tier Tribunal.

Case Law – Mersey Docks & Harbour Company v HMRC

14 Jan 2025

HMRC continue to raise enquiries and to disallow items of plant that could be used for a claimant’s trade. This case relates to the quay wall at the Port of Liverpool

Case Law – Changi Airport Loses $273m Tax Break

20 Dec 2024

Changi Airport Group (CAG) made Capital Allowances claims over three years totalling $272,575,162 on assets including the runways and taxiways but lost with the Court of Appeal determining that the assets were structures and not tools of trade.

Furnished Holiday Lets – HMRC Clarify Legislation

07 Nov 2024

The window to claim Capital Allowances tax relief on furnished holiday lettings (FHLs) is fast decreasing before repeal of the legislation in April 2025 and HMRC have now clarified the transitional rules about who can or can't claim.

New Case Law – Capital v Revenue

04 Oct 2024

A recent important Supreme Court decision in Centrica Overseas Holdings Limited v HMRC addresses the deductibility of expenses incurred by a company. The bar to deduct costs has been raised considerably

HMRC To Increase Scrutiny on Capital Allowances Claims

04 Oct 2024

Not only are Allowances more advantageous than ever before, but HMRC are strategically targeting tax leakage – including through Capital Allowances. Getting the correct advice is essential

100% Full Expensing – What is it and why it’s important

09 Sep 2024

Hailed as the “Greatest Tax Break in History” when it was introduced in 2021, the 130% Super Deduction aimed to take some of the sting away from the hike in Corporation Tax rate that was announced in the same speech. Its replacement, Full Expensing (FE), took over in April 2023 as a slightly less headline-grabby 100% First Year Allowance. But what is it?

Some Good News for Furnished Holiday Let Owners

05 Aug 2024

Positive transitional rules have now been published allowing Furnished Holiday Let owners the ability to use Capital Allowances beyond April 2025

Case Ruling – HMRC v Altrad Services Limited

10 Jul 2024

The decision by the Court of Appeal will have far reaching implications in that it clearly resets the boundaries of what is a capital allowances avoidance scheme designed to increase the quantum of capital allowances claimed

Recent updates to the Carbon Trust Enhanced Capital Allowances (ECA) system may only represent minor tweaks but maintain a significant cash boost for the investment in a wide variety of property assets, from boilers and lighting to rainwater harvesting.  This often forgotten cash back government incentive, if considered at the outset of any construction project, can significantly reduce net project costs.

The Carbon Trust’s Energy Technology list (ETL) https://etl.beis.gov.uk/engetl/fox/live/ETL_PUBLIC_PRODUCT_SEARCH details all assets on which ECAs can be claimed against, with the big-ticket expenditure items being:

  • Lighting
  • Chillers
  • Boilers
  • Lighting and HVAC controls
  • Air conditioning units
  • Pipework insulation
  • Energy monitoring
  • Water saving technology

Once you have identified that your project includes some of these assets, the product selected then must meet the specific performance criteria set for that asset category.  This is often where the claim process falls down, as it will require that product to either be listed or certified as compliant by the individual supplier at the time the expenditure is incurred.  Collating the necessary information is not straightforward and retrospective claims especially are unlikely to be as successful, if picked up at all, particularly if left to the accountant to address 12 to 18 months after the project’s completion.

The benefit for partnerships and individuals is every £100,000 spent on ECA qualifying assets, provides £45,000 cash back in the form of tax relief in the year that it spends the money (£19,000-20,000 for companies).  Veritas Advisory advised on a recent £1m office refurbishment for a firm of lawyers and identified £300,000 of ECAs which represented a £135,000 reduction in the Partners tax return for that year; the increased energy efficiency and potential rental uplift providing further reward.

Claiming ECAs is not an automatic benefit; the key point is that it must be demonstrated by the tax payer that they have the entitlement to make a claim at the time they incurred the expenditure.  Veritas Advisory have an ECA process where by working alongside the project team we liaise with the suppliers to assess the ECA status at the time of procurement and if necessary, facilitate the product listing or certification required to make a claim.

If you would be interested in finding out more about how Veritas Advisory could assist in this area, then please contact one of our Directors (https://www.veritasadvisory.co.uk/about-us/).