Insights
Seminars & Events
News

Latest Insights

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:

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

Archive

 

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.

Legislative requirements and market demand are driving the need for buildings to become more sustainable in terms of construction and operationally.  Here we explain how capital allowances can help to offset the cost of refurbishing existing buildings to achieve higher green building standards.

Building design is increasingly looking at innovative ways to deliver greener buildings and the different building design options which provide the most cost effective outcome in hitting the desired rating.

The tax relief provided by claiming capital allowances by the entity that incurs the expenditure is often overlooked.  By factoring in the capital allowances to help ‘pay back’ some of the cost, is increasingly important to assist in the feasibility of these projects.

Capital allowances provide some form of tax relief against most types of building works, here we consider a selection:

Thermal insulation to existing buildings

This can take many different forms from replacing single glazing to double or triple glazed units to over roofing or cladding.  All these measures attract thermal insulation allowances providing it can be shown to improve the building’s u-value.

Electricity consumption

With the cost of utilities going up, building owners and occupiers are looking at cost effective ways to reduce energy consumption and to future proof their buildings. This could be through replacing lighting to LEDs, adding intelligent controls and adding photo voltaic panels.  All these building measures qualify for integral features where they form part of the ‘trades’ electrical system.

Heating & Cooling

The way buildings are heated and cooled are too many to list for this article, but increasingly building owners and occupiers are considering non fossil fuel solutions which for existing properties can be challenging to incorporate.  Building efficiencies into existing systems is often a first consideration.  Adapting more efficient boilers or moving to electric heating, ground source heat pumps and CHP, are all options that can deliver greener accreditation.

Solar shading can be installed to reduce the solar gain to reduce the buildings demand for cooling and can come in the form of a separate fixed overhang, or part of the cladding design.

Each of these measures qualify for some form of capital allowance, typically integral features. Claims can be increased further by including the associated builders works, preliminaries and certain professional fees, which can be apportioned to the specific qualifying plant items.

In the autumn statement it was confirmed that the annual investment allowance will remain at £1m and is available for individuals, partnerships and companies which based on a corporation tax rate of 25% will provide up to £250,000 of tax cash savings, or £450,000 for partnerships and individuals.

To understand more about how capital allowances can help to offset the cost of office refurbishments, please contact one of the directors.