What are Capital Allowances?
When you buy long-term assets, such as property or plant and machinery, you cannot simply deduct the expenditure in calculating your business profits. However, you may instead be able to claim Capital Allowances based on the expenditure.
Capital Allowances provide a type of tax relief that allows businesses to deduct the cost of certain assets from their taxable profits. This tax relief could be generated for claims following capital expenditure on commercial property, including:
- Purchase of an old or newly built property
- Construction of a new property
- Building alterations, extensions and refurbishments to a property
- The fit-out of let property
Capital Allowances are available for all businesses and individuals who are liable for tax, from sole traders to large nationwide organisations.
Many business owners are surprised at the wide range of assets and expenditure that qualifies for Capital Allowances. That is why the expertise of a Capital Allowance consultant can prove advantageous, ensuring that businesses do not miss out on valuable tax relief.
If you would like to find out more about how Capital Allowances could save your business money; call us on 01423 567818, or click here to make an enquiry.