Capital Allowances Advice in Harrow

The term 'Capital Allowances' describes the deduction we are able to claim on your behalf, in lieu of depreciation, for expenditure on plant and machinery.

Although the term 'plant' is defined in statute, the law is not straightforward and there is a long history of disputes between taxpayers and the authorities about what does and doesn't qualify as plant.

The importance of plant allowances has increased in recent years following the phasing out of allowances for industrial buildings, hotels and agricultural buildings. Allowances are no longer generally given for the structure of a building but a significant part of the expenditure on the purchase of a property may be classified as plant.

Items of expenditure that might qualify for plant allowances on the purchase of a new or existing building include the following:

  • Air conditioning
  • Hot and cold water systems
  • Electrical systems

However, due to recent changes in tax law it is vital that we advise you before the purchase of a building in order to maximise the allowances - please contact Harrow based Sterling for further information.

Sterling can help

Claiming capital allowances can be a complex process and the advice of a firm of accountants can be invaluClaiming capital allowances can be an involved process, and the assistance of a qualified firm of accountants is invaluable. Our specialist team of business tax advisers will be able to identify the allowances and reliefs available to you, and provide advice on the timing of capital expenditure to obtain the maximum tax That's where we come in. Our qualified team of business tax advisers can identify the reliefs and allowances which may be available to you, and advise on the timing of capital expenditure to maximum tax advantage.

If you intend to invest in your business and want to discuss the impact of capital allowances on your plans, please contact our Harrow branch.