Businesses which invest in energy-saving plant or machinery may be able to take advantage of an additional tax break. Capital expenditure is covered by the Annual Investment Allowance (AIA), which gives full tax relief for capital expenditure in the year of purchase, and covers most plant and machinery up to an annual limit of £200,000. … Continue reading Considering Enhanced Capital Allowances
So, you’ve bought a rental property and once extensive repairs have been carried out to bring the property to a habitable state, you assume that you can offset said expenditure against your rents, thus receiving income tax relief? You may be shocked to learn that this tax treatment could in fact be wrong! If a … Continue reading Relief for Rental Property Repairs
The ever present, ever contentious issue of capital expenditure versus revenue expenditure has made another appearance in a recent tax tribunal. The case of Hopegear Properties Ltd v HMRC follows on from the Cairnsmill Caravan Park Case in that we see another victory for the tax payer surrounding the issue of allowable repair expenditure. HMRC … Continue reading The Battle Rages On…
The Green & Co Summer 2014 Newsletter is now available. Green Co Summer 2014 Newsletter The focus rests, in particular, on the following areas: Flexible pensions on the horizon PAYE reporting – year two of Real Time Information Increasing ISA limits and the relaxation of some rules Capital expenditure relief doubles £2,000 NIC cut for employers … Continue reading Summer 2014 Newsletter
HMRC has brought yet another claim for repairs as revenue expenditure before the First Tier Tax Tribunal. The claimant, a limited company, traded from premises on an industrial estate. It claimed as a deduction in its profit and loss account expenses for: the diversion of telecommunications cables relaying and resurfacing a carriageway repairs to the … Continue reading Repairs – Capital or revenue expenditure?
Trying to establish whether a repair is an allowable trading expense or a capital deduction can be a minefield. It is a complex and grey area and causes many problems. HMRC state that a repair means the restoration of an asset by replacing subsidiary parts of the whole asset. If there is a significant improvement … Continue reading Repair – capital or revenue expense?