Capital allowances can be claimed on most assets that a business has purchased and this expenditure can be claimed against a company's taxable profits.
Assets purchased by a company can come in many forms such as fixtures and fittings, land, technology, etc. as each asset plays a different role in the Tax rules that apply can vary.
Annual Investment Allowance
As the limit for annual investment allowance (AIA) has been increased from £200,000 to £1,000,000 then the purchasing of expensive assets could be financially beneficial to the company if purchased at the correct time.
If for example, the company were to buy machinery worth £1,000,000 at the end of the tax year then a further £1,000,000 a the start of the next tax year, the company would benefit from £2,000,000 worth of AIA. If both assets were bought in the same tax year then they would not receive as much AIA.
Capital Allowances
Capital Allowances are often overlooked or avoided altogether. D:CA are dedicated capital allowance experts who are committed to getting every commercial property owner the tax deductions they deserve.