
Capital Allowances are the deductions which allow businesses to secure tax relief for certain capital expenditure. Capital Allowances are available to sole traders, self-employed persons or partnerships, as well as companies and organisations liable to Corporation Tax.
The Capital Allowance legislation does not specifically define plant and machinery (P&M). However, there is legislation that makes it clear that most buildings, parts of buildings and structures are not P&M.
An interesting case dating back to 1982 helps to confirm this point of view. The decided case concerns a company that spent money on décor items such as light fittings and wiring as well as decorative items such as wall plaques, tapestries, murals, prints and sculptures. It was accepted that electric wiring was part of the fabric of the building but not the other decorative assets.
HMRC’s internal guidance states that inspectors should only accept that items of decor are plant if the taxpayer can show that:
For example, a painting on an accountant’s office wall that is owned by the accountant is not plant because selling atmosphere is not part of an accountant’s business.
If you need to file a tax return for the 2025/26 tax year, the self-assessment deadline is 31 January 2027....
The position is now much clearer. Retail access to certain crypto exchange-traded notes (crypto ETNs) in an IFISA was reopened...
Running a car rental company in the UK involves far more than simply handing over keys to customers. From navigating...
Companies House late filing penalties remain a significant concern for private companies, public companies, and LLPs across the UK. Missing...
Car garages face unique challenges when it comes to managing VAT efficiently, especially as the automotive sector continues to evolve....
Understanding VAT compliance can indeed be a tough challenge. Moreover, this is especially true with the varied challenges in different...
Holiday accommodation is vital to the Welsh rural economy. Yet the 2023 tax reforms introduced a steep 182‑day letting threshold...
Effective VAT Planning Strategies help businesses optimise their tax position, boost cash flow, and simplify VAT compliance. Below are some...
Understanding VAT for advertising design companies is essential for ensuring tax compliance and maximising your business’s financial efficiency. As a...
Plumbers spend their working days repairing leaks, clearing blocked drains and installing plumbing systems, leaving limited time for financial administration....