How Your Firm Could Be Making Better Use of Capital Allowances in 2024 with Leyton and On Point Data

The capital allowances regime is an ever-evolving form of UK tax relief which is available to almost every business that incurs capital expenditure for the purposes of their qualifying activity. In most instances, accountants and tax advisors are familiar with the relevant legislation and make claims as part of the routine year-end tax compliance process for ‘simple’ expenditures such as machinery, equipment and motor vehicles.

However, the legislation does contain several complexities, particularly when businesses enter into one-off transactions outside of the norm, often related to commercial property. CA claims are sub-optimal or even nonexistent in respect of these transactions due to a lack of expertise and experience in the area driven by the complexity of the legislation. 

On Point Data’s partner, Leyton, has a dynamic team of chartered accountants, quantity surveyors, building engineers and tax professionals, allowing for a more detailed exploration of facts to assess potential opportunities to optimise any available CA claims.

Key areas where Leyton add value are as follows:

  • Commercial property construction/refurbishments and fit-outs:

Driven by a lack of understanding of the nature of the expenditure, accountants often underclaim allowances on construction projects to be prudent. As a result, significant relief is missed due to incorrect categorisation or poor information. Given the in-house expertise at Leyton, information gaps can be overcome with the in-house surveying function.

  • Commercial property transactions (pre & post-purchase):

Driven by the property’s ownership history and key legislative change dates, relief is potentially available for consideration paid on the acquisition of commercial property. It is always worth assessing any potential entitlement to allowances, as an investment in commercial property is often a significant capital commitment for any business. The advice can come both pre and post-contract as there are mechanisms and elections that can be put in place to protect the CA position from both a buyer’s and seller’s perspectives.

It is important to note that most CAs do not expire, and there is no time limit to make a claim. Ultimately, this allows businesses to undertake a detailed health check on their current property portfolios to ensure that existing assets have a fully optimised CA position. Leyton frequently undertakes health checks like this for clients at no cost to assess any potential benefit/value gained from a detailed review.

In summary, CAs are a valuable tax relief often underclaimed concerning investment in commercial property. It is crucial to have an experienced advisor to ensure that allowances are not lost during the pre-contract acquisition process of a property, and equally, any post-completion expenditures are reviewed in detail.

Partnering with On Point Data means connecting your business with outstanding service providers like Leyton, who can help you prevent the loss of valuable allowances and so much more. Contact OPD today to learn more > 


This article was submitted to be published by On Point Data as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

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