How HMRC Treats Capital Allowances

Capital allowances are a valuable yet often overlooked tax relief for businesses in the UK.

With estimates suggesting there are over £7 billion in unclaimed capital allowance tax reliefs, leveraging this opportunity can drive economic growth and bolster company finances.

Understanding Capital Allowances

A capital allowance serves as a tax relief for businesses, allowing them to deduct the value of certain items from their profits before paying tax to HMRC. While capital allowances do not result in direct cash refunds, they effectively reduce tax liabilities, freeing up more funds for business investment and growth. Importantly, capital allowances are available to businesses regardless of their structure or tax status.

Types of Capital Allowances

Capital allowances can be claimed on various assets, including plant and machinery, business vehicles, and equipment. The Annual Investment Allowance (AIA) allows businesses to offset up to £1 million per annum against their tax liabilities. If the AIA limit is exceeded, Writing Down allowances can be utilised to spread the deduction over subsequent years.

Additionally, there are other types of capital allowances covering activities such as renovating business premises in disadvantaged areas, extracting minerals, research and development, patent rights, dredging allowances, intellectual property, and commercial structures and buildings.

Why Choose Complete Capital Allowance

At Complete Capital Allowance, capital allowances are our expertise. Our dedicated team specialises in navigating the complexities of capital allowance claims, ensuring businesses maximise their tax relief while minimising resource allocation. We work closely with clients, accountants, and HMRC to streamline the process and deliver tangible results.

Payment Assurance Guarantee

With our Payment Assurance guarantee, clients can have peace of mind knowing they are only liable to pay our service fee once their capital allowance claim is accepted by HMRC. This ensures transparency and accountability throughout the process.

Get Started Today

Don’t miss out on valuable tax relief opportunities. Contact the Complete Capital Allowance team today to start your capital allowance tax relief claim. Let us help you unlock tax savings and drive your business forward.