Corporate Governance and Tax Avoidance

Corporate Governance Incentives and Tax Avoidance

The question of tax avoidance has been brought into prominence in recent years by reason of a number of important court cases in the UK and, in particular, the disclosure requirement regarding tax avoidance schemes. This topic is of such overwhelming importance that the reader should have a general knowledge so that in the course of reading the chapters to follow he would be able to appreciate the implications of any tax avoidance device he might be thinking about. A […]

Capital Allowances Special Rates Pool

Capital Allowances Special Rate Pool

Below you will find information and examples of pooling expenditure, plant and machinery pools, long life and short life assets and unrelieved expenditure. Pooling of Expenditure Qualifying expenditure on P & M, subject to certain exceptions, is pooled for calculating WDAs and balancing charges. For this purpose, there are single asset pools, class pools and the main pool. Qualifying expenditure on plant and machinery is placed in a pool for calculating WDA, balancing allowances and balancing charges. If an expenditure […]

Residential Property Capital Allowances

Residential Property Capital Allowances

To reclaim the correct and full amount of tax back from HRMC it is important to understand the details of what is allowed under capital allowances. If you need thorough advice please click here to go to our homepage where you can find contact information to speak with an expert from the best capital allowances consultants available. Plant and machinery CAs are not available on any furniture and equipment supplied with accommodation let furnished. Instead a “wear and tear allowance” […]

First Year Capital Allowances

First Year Capital Allowances

When trying to understand how much your business can claim back against it’s tax bill it is important to consider first‑year allowances. First‑year allowances were effectively abolished from April 2008, but the ones that remained are those given at 100%. These are available to businesses who boost green technology, and energy‑saving. I stress energy‑saving as opposed to energy production, so three effective items here. We’ve got ultra‑low emission vehicles. We have got energy and water‑saving plant and machinery. There’s a […]

Decorating Capital Allowances

Decorating Capital Allowances

A flat conversion allowance is available to convert or renovate empty or underused space above shops and other commercial premises for the purpose of short-term letting. This allowance can only be claimed if it is not an allowable business deduction. Subject to conditions below, a claim can be made for the following capital expenditure: (a) conversion costs; (b) renovation costs; (c) associated repair costs; and (d) the costs of providing access. The above costs can be claimed if one or […]

Annual Investment Allowance Explained

Annual Investment Allowance Explained

The Annual Investment Allowance is 100% allowance for the first charge of expenditure on plant and machinery, and it was introduced with those other huge changes in 2008. It’s available for any size business, from a smallest to the largest, but it’s only one per group of companies, so the mighty BP, for example, would only have one AIA in the whole of its group. It’s very important that we remind people that it’s not available for cars, but it […]

Hotel Capital Allowances

Hotel Capital Allowances

Capital allowances for hotels are available for construction costs in respect of a qualifying hotel or hotel extension. Writing down allowances (WDA) were reduced from 2008-2009 and were withdrawn completely from April 2011. However, enterprise zone hotels which are qualified for enterprise zone allowances on buildings continue to receive such allowances with no restriction on months of opening or number of rooms, etc. For all the cases listed above there are detailed rules governing which type of asset qualifies. In […]

Capital Allowances Property Income

Capital Allowances Property Income

As far as landlords of domestic property are concerned, the situation has been quite fluid over the last few years. Before 2013, a landlord could have the renewals basis. That meant that when you wanted to replace a white good or a piece of furniture, your first spend was dead spend, your second spend was life spend, and you could write it off in the P&L (profit and loss).  Then, in 2013, it was all changed and the wear and […]

Company Capital Allowances

Company Capital Allowances

Capital is not defined in statute and the meaning has been discussed on numerous occasions in numerous, quite often, high profile cases. Let’s have a look at one of them.  This is a quote from Viscount Haldane in John Smith and Son against Moore when he said, ‘It is not necessary to draw an exact line of demarcation between fixed and circulating capital.‘  We probably wouldn’t use the phrase circulating capital. We’d probably use stock and trade now. Since Adam […]

Capital Allowances on Cars

Capital Allowances on Cars and Vans Explained

A claim can be made for capital allowances in respect of any cars or vans which are used in a business but only on the part that relates to business use: 1. Any qualified expenditure incurred on or after 6 April 2009 on cars is allocated to one of the two general plant and machinery pools on the basis of the car’s CO2 emissions. 2. In the event cars are also used for non-business purpose they will be kept in […]