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Capital v Revenue – Understand The Risks v Benefit

As we are fast approaching the self assessment filing deadline for individuals and the amendment window for corporate entities with a year end of March, understanding the importance of what constitutes capital or revenue expenditure, and the risks and benefits associated with it, is extremely important.

24 Jan 2024

Written by: Matt Bell

First Year Allowances for Corporate Members of Partnerships

In a positive move HMRC have updated their capital allowances guidance for partnerships stating that partnerships with underlying corporate partners can claim first year allowances

19 Jan 2024

Written by: Abu Choudhury

Substantial Unclaimed Capital Allowances On Existing Assets

Capital Allowances provide an opportunity to save substantial amounts of money in a lean market yet many property owners and occupiers are already sitting on vast savings without even knowing it.

23 Oct 2023

Written by: David Gibson

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Latest News

Capital v Revenue – Understand The Risks v Benefit

24 Jan 2024

As we are fast approaching the self assessment filing deadline for individuals and the amendment window for corporate entities with a year end of March, understanding the importance of what constitutes capital or revenue expenditure, and the risks and benefits associated with it, is extremely important.

First Year Allowances for Corporate Members of Partnerships

19 Jan 2024

In a positive move HMRC have updated their capital allowances guidance for partnerships stating that partnerships with underlying corporate partners can claim first year allowances

Substantial Unclaimed Capital Allowances On Existing Assets

23 Oct 2023

Capital Allowances provide an opportunity to save substantial amounts of money in a lean market yet many property owners and occupiers are already sitting on vast savings without even knowing it.

The Risk to Lawyers of Not Correctly Addressing Capital Allowances

23 Oct 2023

Solicitors acting for clients on a purchase or disposal of a commercial property must ensure they correctly address capital allowances; failure to do so may give rise to reputational and / or financial risk.

Maximising Capital Allowances and Avoiding Pitfalls Through Timing

23 Oct 2023

The rules surrounding the transition between Super Deduction and Full Expensing can be complex and the importance of fully analysing and understanding any contract for construction or purchase is significant.

Use Capital Allowances to Help Pay for Higher Spec Offices

23 Oct 2023

On a typical £1m CAT B fit out the landlord or occupier, whoever is incurring the expenditure, could recover up to £250k by claiming Capital Allowances.

HMRC Capital Allowances Enquiries Focusing On Certain Sectors

26 Sep 2023

An increasing number of claims being submitted to HMRC are not fully compliant with the legislation, and in some cases are double what they should be, particularly in certain industry sectors.

Unearthing Hidden Treasures – LGT Wealth Article

01 Sep 2023

Veritas Director David Gibson was recently interviewed by Nicholas Duffy of LGT Wealth Management for thoughts on how family offices and property owners can identify Capital Allowances to help leverage other investments. Click here to read in full

Offset ESG Costs With Capital Allowances

09 Aug 2023

The impact of both ESG and MEES on the property sector is resulting in significant capital investments. To incentivise and reduce the net cost of capital investment, tax relief is available by way of capital allowances.

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/).