The following Owner-Managed Businesses guidance note Produced by Tolley in association with Martin Wilson and Steven Bone provides comprehensive and up to date tax information covering:
A capital allowances review is a detailed review of expenditure with the aim of claiming the optimal amount of capital allowances. Examples of opportunities for conducting a capital allowances review include the following circumstances:
your client is acquiring new premises. A substantial part of the purchase price may be apportioned to fixtures qualifying for tax relief, and / or the entitlement to allowances may need to be safeguarded by the inclusion of capital allowances clauses in the purchase contract
your client is relocating to new premises. There will be a risk of previous allowances being clawed back on the sale of the current premises unless proper planning is undertaken. In addition, there may be a substantial amount spent on fitting out the new premises and on the new plant and machinery
the owners of the company are considering selling the business or have been approached by a potential purchaser. A pre-sale health check should help streamline the due diligence process and may highlight opportunities to identify additional tax savings before sale, or to negotiate a higher sale price
HMRC is carrying out a compliance check, not necessarily covering capital allowances, and this represents an opportunity to amend returns for earlier years which would otherwise be out of time. See the HMRC’s powers to open an enquiry into a return guidance note
you have been newly appointed as the client’s tax advisers and have identified some opportunities to increase previous years’ capital allowances claim (or to identify instances where there is a risk of HMRC making a discovery assessment)
Ideally, clients would contact their tax advisers at the first opportunity to discuss planned expenditure (or property sales) at an early stage; however, tax planning is not always a high priority. The key action is therefore to regularly contact clients in order to find out how their business is developing and identify opportunities for value-added work such as
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Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
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