Unlock The Hidden Value In Your Work
If your business has spent money on property for use in its trade, invested in process or technological innovation, or carried out site regeneration there is a good chance it will be entitled to one of the UK governments targeted tax incentives.
We also provide our clients with strategic consultancy advice and support on issues relating to this legislation. This is to ensure that their projects are designed and managed to responsibly take full account of the opportunities offered by UK tax law and that systems are in place to make the tax claims process robust, simple and effective as possible.
Capital allowances reward investment in plant or machinery (fixed or moveable), know-how, dredging, mining and facilities for research & development.
By far the most common are plant and machinery allowances. They apply to most types of businesses (including individuals and companies) and are present in almost all types of properties.
Special rules exist for Real Estate Investment Trusts (REITs), leased plant or machinery, sales and transactions between connected parties.
Claiming tax relief for expenditure on minor repairs is well understood. However, opportunities for tax relief are often missed when repair work is carried out as part of a larger refurbishment project.
A frequent problem occurs when repair work is carried out as part of a larger refurbishment project to an existing building that is capitalised reflective of the majority work involved. This can lead to higher tax bills through missed repair claims.
This is because tax law, not accounting treatment, governs whether expenditure on repairs is allowable.
The government rewards investment in R&D with two incentives: -
- Research & Development (R&D) tax credits
- Research & Development (R&D) allowances
R&D tax credits are a Corporation Tax (CT) tax relief based on revenue costs (e.g. staff and consumables) whereas R&D allowances reward capital investment (e.g. buildings, or parts of buildings, used for R&D).
The basis for R&D for both incentives is the same and we can work with you to highlight everything you can legitimately claim for.
Contaminated Land Remediation Relief (CLRR) was introduced to encourage companies to bring land and buildings blighted by industrial contamination back into use.
It covers certain expenditure on remediation of long-term derelict land. CLRR is also available for the removal of contamination arising from naturally occurring arsenic and arsenical compounds, radon and Japanese knotweed.
There are special rules to govern the types of qualifying expenditure and amounts involved.