One of the biggest energy efficient gains that can be made is to reduce the level of heat loss by improving the insulation to the buildings fabric. To reduce the net cost of one of the more expensive green agenda initiatives, allowances on thermal insulation are available which we set out here.
The method by which you improve the thermal qualities of a building are varied, from upgrading the windows or over cladding the existing building with new walls or roofs to complete replacement to a more modern and energy efficient equivalent.
Whichever option is adopted changes which were introduced in April 2008 in the capital allowances legislation extended the ability to claim on expenditure which improves the thermal qualities of a commercial building, previously restricted to industrial buildings but since 2008 applies to all building types.
The application of this capital allowance is for where a company, individual or property investor (including overseas) has incurred qualifying expenditure in adding insulation against the loss of heat to a building.
HM Revenue & Customs give an example of an application being the upgrade of single glazed windows to double glazed, which is clear cut in the resulting improvement of the thermal qualities to the building. There are however other forms of expenditure which are ‘grey’ and require suitable evidence to be prepared in order to be relied upon if enquired into by HM Revenue & Customs and therefore demonstrate the tax payer’s entitlement to claim.
Veritas Advisory has had recent success in making many such claims on behalf of our clients and should you be interested in discussing a particular case, then please contact one of our Directors (https://www.veritasadvisory.co.uk/about-us/).