What are Capital Allowances?

Capital Allowances are a tax benefit that can be used to minimise or perhaps, eliminate, your tax bill.

Expenditure on items of plant and machinery acquired for the purpose of your trade qualify for Capital Allowances and the list is more extensive than most people appreciate.

Items that your existing advisers and routines will have already claimed against will be ‘movable’ items that have been identified because there is an invoice relating to them. e.g.

• Computers
• Furniture
• Cars
• Fax Machines etc

The items which may not have been claimed will be the ‘immovable’ items that are embedded in the property and therefore have probably never been identified by way of an invoice. e.g.

• Radiators
• Fire Equipment
• Heating
• Non Slip Flooring
• Lift shafts
• Plus many more

You may have thought these items were part of the building – and they are - but they also have a function. It is this area where there are often huge outstanding Capital Allowances claims to be made because these items are rarely, if ever, counted.

More information on claiming Capital Allowances