Tag Archive: capital allowances
The twin-cab pickup makes a U-turn
Posted 6th March 2024 at 11:42 am
In an announcement made on 19 February, the government made a surprising U-turn and confirmed that twin-cab pickup vehicles with payloads of 1 tonne or more will continue to be treated as goods vehicles for both capital allowances and benefit-in-kind purposes. On 12 February, HM Revenue & Customs (HMRC) had updated its guidance on the tax treatment of twin-cab pickups following a 2020 Court of Appeal judgment. The guidance had confirmed that, from 1 July 2024, twin-cab pickups with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and... Read more
Capital Allowances Update
Posted 12th December 2022 at 1:28 pm
Permanent increase in AIA limit The Annual Investment Allowance (AIA) is a capital allowance which provides immediate relief for qualifying expenditure up to the AIA limit. The limit will now remain at £1 million, rather than reverting to £200,000 from 1 April 2023. As a result, you may wish to reassess your capital expenditure plans. Where cashflow is tight, it is no longer necessary to incur the expenditure before 31 March 2023 to benefit from the £1 million limit. Super-deduction and 50% first-year allowance for companies Companies are able to benefit from two additional first-year allowances for qualifying expenditure... Read more
R&D Relief: Why there’s never been a better time to claim
Posted 5th December 2022 at 10:47 am
Following the Autumn Statement, this blog will show you why there will never be a better time to claim Research & Development Tax Relief, how capital allowances just became a whole lot more valuable, and why R&D allowances remain an under-claimed opportunity. We also look at the benefits of Investment Zones, and why you should not forget about the Patent Box. R&D tax relief – remains an extremely valuable relief to claim It’s been no secret that one area which has been widely scrutinised in recent months, and has become a target area for clamping down on boundary-pushing and... Read more
Have your say on Capital Allowances
Posted 1st June 2022 at 6:53 am
HM Treasury is inviting businesses to share their thoughts on how the UK’s capital allowances regime could be reformed, in the hope of fostering a new culture of enterprise and growth in the UK. The UK has a long-standing issue with productivity, and one of the key underlying causes is a lack of capital investment. According to OECD data, companies invest just 10% of GDP each year, compared with 14% in our competitor countries – and one of the reasons is that our tax system doesn’t reward investment as much as other countries do. The Spring Statement set out some... Read more
Specialist Tax: Capitalise on your assets
Posted 29th June 2020 at 11:44 am
Over half of UK businesses will not have claimed their entitlement to Capital Allowances which could be worth hundreds of thousands of pounds. In this second of a series of specialist tax scheme blogs, we look at how you can claim capital allowances. When can you claim capital allowances? You can claim capital allowances when you buy assets that you keep to use in your business. In most cases you can deduct the full cost of these items from your profits before tax using annual investment allowance (AIA). If you sell the item after claiming AIA you may need... Read more