Capital Allowances

Specialist Corporate Tax Accountants in London & Hertfordshire

How can we help you with Capital Allowances?

Capital allowances were introduced originally under the Income Tax Act of 1945. Since then, there have been numerous changes and amendments to the Capital allowances legislation.

What are capital allowances?

Capital allowances reduce a business’s annual taxable income and enable it to retain more of its profits. Capital allowances are a replacement of depreciation charged within the accounts which are not allowable for tax purposes, a thorough understanding of capital allowances is critical in managing the tax liability for any business with capital expenditure.

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Typically, you will see capital allowances being claimed on the following types of assets:

Plant and machinery
Fixtures and fittings
Integral features
Structures and buildings
Research and development
Commercial property

How can capital allowances benefit your business?

Capital allowances can significantly benefit your business by allowing you to claim tax relief on qualifying capital investments, such as machinery, equipment, and property. By reducing your taxable profits, capital allowances can lower your tax liability, providing immediate financial relief. This enables businesses to reinvest savings into growth initiatives.

Additionally, capital allowances help spread the cost of large investments over time, improving cash flow and making it easier to manage expenses. Claiming these allowances ensures you’re not overpaying taxes and maximises available tax benefits, ultimately enhancing your business’s financial efficiency and profitability.

How can Rayner Essex help with your capital allowances?

Rayner Essex can help your business maximise capital allowances, ensuring you claim all eligible tax relief on your investments in property, equipment, and machinery. Our team of capital allowance specialists conduct thorough reviews of your assets to identify qualifying items, ensuring compliance with current tax regulations. By accurately calculating and claiming capital allowances, Rayner Essex can reduce your taxable profits, potentially resulting in significant savings for your business.

We provide strategic advice on how to make the most out of your claims, helping you manage your finances more effectively. Our comprehensive approach ensures you take full advantage of available tax benefits, improving your cash flow.

Whether you are undertaking a large project such as renovating a building or simply purchasing a number of fixed assets in the year. Our dedicated team can assist in maximising the tax savings available under the capital allowances regime.

Get in touch

The expert team at Rayner Essex can provide advice and guidance across all aspects of the capital allowances. Whether you would like us to complete a capital allowances report for a specific piece of expenditure, or review a claim completed in-house, we can provide practical solutions to meet your business’s needs. Get in touch with the team to discuss your requirements today.

Get in touch

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