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Capital improvement
Key points
- The main purpose of capital allowances is to represent the value capital assets bring to a business over time.
- List C in CAA 2001 s 23 provides details of assets to be included in the main plant and machinery pool.
- Structures and buildings allowances may not always offer the best result.
- Research and development allowances offer a 100% first year allowance for capitalised expenditure incurred on carrying out qualifying research and development.
- All may not be lost if expenditure is incorrectly categorised as capital rather than revenue.
Growing and improving a business is an expensive process particularly when the cost of materials and labour are affecting capital projects nationwide. Maximising the tax relief in connection with capital expenditure projects can help offset the cost of these works and enhance the commercial viability of the project.
This article aims to provide a detailed overview of the allowances available...
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