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Capital allowances

Access expert commentary and practical guidance from ICAEW on capital allowances within the UK tax regime

In this section

Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax.

Capital allowance around buying a farm

The current value of farms is high despite low profits and uncertainty. At the time of writing, demand for farms exceeds supply and there are a larger number of buyers who are new to farming coming into the market. Purchasing a farm can give rise to many tax reliefs and it is essential that these are maximised from every perspective and be tailor-made to the buyer. Capital allowances planning is often overlooked or even dismissed as too tedious.

Webinars and recordings

Capital Allowances

Brought to you by the Tax Faculty, this webinar covers the capital allowances landscape following the provisions in the 2021 Finance Act.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Capital allowances

Chapter containing practical advice on capital allowances in relation to incorporating a business.

Capital allowances (plant and machinery)

Expert commentary on the current UK corporation tax legislation on capital allowances for plant and machinery.

Capital allowances

A chapter on capital allowances, containing worked examples throughout.

Capital allowances on property transactions

Guidance on capital allowances on property transactions, highlighting tax planning opportunities and potential pitfalls.

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Chattels and wasting assets

Explains the nature of chattels and wasting assets as defined by the Taxation of Chargeable Gains Act 1992. Shows where capital allowances are available using a reference table and a worked example.

Trading income

Explains how corporation tax applies to trading income and the ways in which it differs from income taxation. Covers the annual investment allowance, first-year tax credits and capital allowances for plant and machinery.

Capital allowances on plant and machinery

An outline of allowances for small businesses provided under the Capital Allowances Act 2001. This chapter covers business premises renovation allowance, qualifying expenditure, qualifying building, and other relevant matters.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Representations

ICAEW REP 77/21: Basis Period Reform

Pushing through proposals to change basis periods ahead of the expansion of Making Tax Digital will cause as many problems as it solves and would be a backwards step for affected businesses, warns ICAEW in its response to HMRC's consultation on aligning basis periods with the tax year. ICAEW has urged the government not to implement to proposals.

ICAEW REP 35/21 Finance (No.2) Bill - super deduction

Briefing submitted to MPs on 12 April 2021 on Finance (No.2) Bill 2019-21 published by government on 11 March 2021 on clause 9 which relates to super-deductions and other temporary first year allowances.

Further support

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Enhanced Structures and Buildings allowances in Freeports

Measure introduced in Budget 2021 offering an enhanced 10% rate of Structures and Buildings Allowance for constructing or renovating non-residential structures and buildings within Freeport tax sites in Great Britain, once they have been designated.

What capital allowances can I claim?

Summary from the Low Incomes Tax Reform Group which explains what capital allowances are and how to claim them.

Capital Allowances Manual

Internal HMRC manual which defines capital allowances, explains how allowances are made and how to claim.

Capital allowances training

A series of short online presentations on capital allowances presented by Ray Chidell, a renowned author on the topic. The talks cover a whole spectrum of capital allowances issues, from fixtures and integral features to the definition of plant and the claiming of allowances, using examples to demonstrate how the rules work out in practice.

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