Cashflow Lifeline through Capital Allowances

Uncategorized Mar 01, 2021

Business Cash Flow Relief

DO YOU OWN A COMMERCIAL PROPERTY?

What if there was a way to release funds from past tax paid, using a tax relief which is perfectly available on capital expenditure you have already made? For those who have purchased or improved their properties, there may well be... With help from D:CA

THE CASH FLOW LIFELINE?

In most cases there is no time limit on how far back you can look to claim against your expenditure. This means you could have bought a property 10 years ago and still be able to claim today. Tax Relief from this historic expenditure can be carried back using the amendment window of your tax return. In most instances, this runs for one year from the filing deadline of the return.

This means personal tax returns filed in January of this year, can be amended up until January 2022.  Limited companies must file their tax return one year after their year end, which can then be amended for a further year i.e. up to two

 

WORKED EXAMPLE

 

A Limited company acquired an office for £800k from a pension fund in 2018

An average office claim is 25% of Capital Expenditure = £200k All written off using the AIA = rebate of £38k

That’s nearly £40k back on money already spent, using a statutory relief that you are specifically entitled to claim by the Capital Allowances Act2001.

Therefore uncontroversial tax saving = cash flow issues alleviated.

 

HOW TO CLAIM THIS RELIEF?

We've made it simple, just fill out our do i qualify form and a member of our tax team will be in touch to walk you through the whole process to see how much you are due.

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