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Capital Allowances Incentives to Increase?

In a positive move to encourage capital investment Rishi Sunak announced in the 2022 Spring Statement plans to expand the Capital Allowances legislation, subject to a consultation process, to be formally announced in the autumn budget and to take effect from April 2023

23 Mar 2022

Written by: David Gibson

Veritas Contribute to UKAA Publication – Improving Returns on Build to Rent

As a member of The UKAA, we were pleased to be invited to contribute to their latest buzz news issue, in which we explain how investors-operators of build to rent can improve investment returns by claiming capital allowances

02 Nov 2021

Written by: Nolan Masters

Veritas Confirmed New Member of UKAA – The Organisation for the UK Build to Rent

Veritas Advisory have now been confirmed as a new member of UKAA, the organisation for the UK Build to Rent sector. 

18 Oct 2021

Written by: David Gibson

Archive

 

Latest News

Capital Allowances Incentives to Increase?

23 Mar 2022

In a positive move to encourage capital investment Rishi Sunak announced in the 2022 Spring Statement plans to expand the Capital Allowances legislation, subject to a consultation process, to be formally announced in the autumn budget and to take effect from April 2023

Veritas Contribute to UKAA Publication – Improving Returns on Build to Rent

02 Nov 2021

As a member of The UKAA, we were pleased to be invited to contribute to their latest buzz news issue, in which we explain how investors-operators of build to rent can improve investment returns by claiming capital allowances

Veritas Confirmed New Member of UKAA – The Organisation for the UK Build to Rent

18 Oct 2021

Veritas Advisory have now been confirmed as a new member of UKAA, the organisation for the UK Build to Rent sector. 

Veritas Supporting Charitable Causes

01 Oct 2021

We have chosen to support four charitable causes reflecting activities that are close to us and to people we know and would like to raise awareness of.

Using Artificial Intelligence for Capital Allowances

27 Sep 2021

Can Artificial Intelligence help claim capital allowances? In addition to preparing detailed claim reports for clients, Veritas Advisory, in partnership with Brunel University and Innovate UK, are applying technology to solve some of the issues, the main one being how to use data efficiently and correctly.

New Case Law – Potato Store is Plant

07 Aug 2021

JRO Griffiths Limited v The Commissioners for Her Majesty’s Revenue and Customs [2021] UKFTT 257 (TC) resulted in the taxpayer winning their appeal in whether or not a warehouse used to store potatoes for a crisp manufacturer is plant.  The taxpayer won on 2 counts.

Estates Gazette Article – Capitalise on Allowances

20 Jul 2021

Veritas Advisory Director Nolan Masters, together with Alex Barnes a Partner at BDB Pitmans LLP, have published an article in Estates Gazette on how capital allowances claims can mitigate the increasing cost of tax on property investment.

New Case Law – Satellites

16 Jul 2021

A Capital Allowances case Inmarsat Global Limited and The Commissioners for Her Majesty’s Revenue and Customs UT/2019/0167 V), has been refused by the Upper Tier Tribunal, in relation to the launch of satellites.

Taxation Magazine Article – The New Super Deduction

04 Jul 2021

In the June edition of Taxation Magazine Veritas Advisory Director Nolan Masters set out how the new super deduction and special rate allowances will affect property owners, occupiers and investors. Click here to read the article in full

The new Structures and Buildings Allowance and the increase to the Annual Investment Allowance were the main Capital Allowance headlines from Budget 2018, but here we set out some further significant changes for businesses and investors to take note.

The Chancellor announced that from 1 April 2019 the rate of relief for Special Rate Pool will be dropped from its current 8% per annum on a reducing basis to 6%.  This is to align the rate of relief more closely to the useful life of the assets on which it is claimed.

For chargeable periods which straddle 31 March 2019, there will be the requirement to calculate and apply a hybrid rate for the transitional period.  For most SME’s this change will have little impact, as it is more than compensated for by the increase in the Annual Investment Allowance to £1m.

Since 2001, businesses and investors have been able to obtain an accelerated rate of relief of 100% in the year of expenditure for certain energy efficient or water saving technologies.  From 1 April 2020 this enhanced relief is to be removed along with the ability to claim tax credits for those in a loss making position.

In addition, the current products as manged by the Carbon Trust are to be revised.  For any ongoing or planned expenditure up to 1 April 2020, clients should check and ensure that the suppliers of those potentially qualifying products are made aware of the changes to the qualifying criteria.  If necessary, relist their products or check that they meet the performance criteria so that the necessary qualifying certification can be obtained to allow the client to obtain the enhanced allowances.

As projects get closer to the 1 April 2020 deadline, consideration will also need to be given to the point as to whether qualifying expenditure has been incurred before the abolition date and so supply contracts will be crucial to determine the position.

Finally, in a recent Capital Allowances case of SSE Generation Limited vs HMRC, it considered and, in some cases, allowed Capital Allowances to be claimed on alterations to the land.  New legislation has now been drafted and takes immediate effect from 29 October 2018, allowing the claiming of Capital Allowances for costs for altering the land, only where its purpose is for the installation of qualifying plant and machinery.

This legislation change intends to clarify the fact that alterations to land, to the extent they do not relate to the installation of plant and machinery, cannot be claimed as normal plant and machinery allowances.  It does also confirm that the new Structures and Buildings Allowance will, however, provide tax relief for land alterations connected to the construction of structures and buildings.