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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.

TAXguide 04/14

Renewals basis for unfurnished rental property.

Maximising capital allowance claims

Dean Needham explains how the timing of investment expenditure can affect the level of tax relief available, as the annual investment allowance (AIA) reverts to the pre-pandemic level of £200,000 on 1 January 2022 and transition rules will apply to accounting periods straddling that date.

The Finance Act 2021 impact on owner-managers

Finance Act 2021 introduces changes to corporation tax rates and loss carry-back rules relevant to both companies and unincorporated business owners. Andrew Constable and Richard Jones consider some of these changes, and their impact on the decisions of owner-managers.

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.

Business tax update

The latest key tax rules and reliefs affecting business.

Capital allowances

This webinar provides illustrative examples and practical tips on how to maximise capital allowances and take advantage of the reliefs available.

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 on property transactions

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

Capital allowances: transactions and planning 2021/22

Guide explaining the practical and technical aspects of capital allowances and the related tax reliefs on property.

Capital allowances

Chapter providing expert guidance on capital allowances in relation to partnership taxation.

Capital allowances

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

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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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