The key points:
- Applies to expenditure from 1 April 2021 to 31 March 2023
- For contracts after the 3 March 2021
- On new expenditure or unused purchases
- Provides 24.7% or 32.5% cash saving
- Leased assets are restricted unless retain ‘control’
- Early contract planning critical
- No cap on claim values
Who can claim:
- Only corporate taxpayers can claim including offshore
- Owner occupiers and tenants can claim on their expenditure
- Landlords can claim on common area plant and machinery where retain ‘control’
- Opco propco structures and single let properties likely to miss out
- Claims possible on multi-let and operational buildings
How to claim:
- Requires individual qualifying assets to be identified and valued
- Need a detailed valuation exercise to identify landlord controlled assets
- Area apportionments give rise to under claiming
- Must claim in the year of expenditure