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.

ESG (Environmental, Social, Governance) is a framework to assess a business’ appetite for its green and social responsibility. We have increasingly seen commercial property investors aligning investment decisions with their ESG ambitions.

For property investors this means pursuing buildings which are energy efficient and those that provide spaces with the occupiers’ mental wellbeing in mind.

One of the tools used by Government to advance the environmental aspect of ESG is the introduction of the Minimum Energy Efficiency Standards (MEES). MEES sets the energy efficiency standard of commercial properties with an Energy Performance Certificate (EPC) rating.

This is set to increase from E to B by 2030 as a result property investors are undertaking significant capital investments in either refurbishing existing properties or developing new properties which are compliant.

Capital Allowances Opportunity

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.

Currently you have the Annual Investment Allowance (AIA) of £1m which is available to individuals and corporates to write-off 100% of qualifying capital expenditure in the first year up to a limit of £1m, providing a potential tax saving between £450k (45% personal tax rate) to £250k (25% corporate tax rate) respectively.

For corporates there are further First Year Allowances (FYAs) such as the 100% Full Expensing and 50% Special Rate Pool FYA, both allow for 100% and 50% write-off of qualifying capital expenditure in the first uncapped, respectively. The FYAs are in place until March 2026.

Front End, not Back End, Capital Allowances Considerations

Capital Allowances, despite their enormous potential to reduce the net cost of capital projects, are still rarely considered at the outset of a project, or in value engineering exercises, but rather only on completion when less scope is available to maximise the tax efficiencies. Many companies or individuals incurring the expenditure still do not claim Capital Allowances at all.

Bringing forward consideration of the Capital Allowances, seeking advice from a Capital Allowances specialist, will only help reduce project costs, and in some cases, can make a project viable.