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Any business can claim tax allowances, called capital allowances, on certain purchases or investments. This results in a reduction in the business tax bill – which can’t be bad.

In general capital allowances are available on plant and machinery, buildings – including converting space above commercial premises to flats for renting – and research and development. But whilst on the surface it all seems simple enough in practice there are quite a lot of tax planning opportunities which can easily be overlooked by business owners or their accountants.

There are some simple strategies that most businesses can take advantage of, and these should all be known by an accountant. These include planning to maximise your allowance by purchasing new equipment before the year-end rather than at the beginning of the next accounting year.

In general tax rules only allow you to claim a percentage of the equipment cost in the year in purchase with the remainder being written off in subsequent years, but you are not obliged to claim all your allowances in a particular year and you can often benefit by bringing your capital allowances forward one year.

However there are other more complex ways for a business to maximise its capital allowances and over the next few weeks I will be posting details here. Why not sign up to our feed or follow us on Twitter to be sure of getting the information as it becomes available?

James Green & Co can offer a wide range of tax services to your business whatever its size or location. Contact us to discuss ways we can help you.

See Also:

Category: Taxation

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7 Responses to “How to Maximise Your Capital Allowances”

  1. Daniel says:

    Can you give more info on capital allowances please?

  2. James Green says:

    I will be posting more on capital allowances in the next day or so. I’ve been rather busy this past month – have to earn a crust towards Christmas!

  3. AnneGiff says:

    When are you going to write again on Capital Allowances?

  4. James Green says:

    I’ve never been a journalist Jenny but I am a published writer (books, articles, plays) and was involved in publishing for many years. If you are interested you can do a search on J. C. R. Green on Amazon – but use their advanced search or you will get a whole lot of false hits. There are some variations such as J.C.R. (no spaces) and J C R (no dots) but any “spelling” seems to get the same books but not in the same order. Odd.

  5. Jenny says:

    Are you a professional journalist? You write very well.

  6. kalooga says:

    Interesting and informative. But will you write about more on this one?

  7. Floost says:

    Thank you! You always write very interesting articles. You improved my mood.

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