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:
Capital allowances are available on construction work on commercial property where the completed building will be classified as a tangible fixed asset in the financial statements of a company, such as:
companies constructing buildings for use in the business
companies refurbishing / fitting out an existing property for use in the business
Capital allowances may also be available on the construction of a building to be held as an investment by a property investment company.
The main capital allowances available will be for fixtures and other plant and machinery, and for construction expenditure on structures and buildings incurred on or after 29 October 2018.
In order to maximise the level of capital allowances available, it is important to carry out detailed planning before, during and after construction and to retain appropriate supporting documentation. In particular, it is worth emphasising that while construction expenditure attracts allowances of up to 3% per annum, expenditure on plant may be relieved at rates up to 100%. Businesses should therefore avoid complacency and make every effort to properly identify expenditure on fixtures and other plant.
Construction projects may take several years to complete and consequently the timing of expenditure must be considered when compiling the relevant capital allowances claims. The basic rule set out in CAA 2001, s 5 is that expenditure is ‘incurred’
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.