As many business owners are finalising their accounting for year end it is interesting to note how many forget about capital allowances.
A capital allowance is a based on an item which provides benefits for successfully trading and where the cost of the item is not deductible from trading profits, meaning that there is a measure of tax relief available on the item. In essence there is a tax incentive to invest in plant and machinery.
A capital allowance can also apply when expenditure has been spent on the construction, refurbishment, upgrading fit out or purchasing of commercial property.
There is actually no time constraint on applying for a capital allowance, as long as the business still owns the asset and it is being used withing the operation of the company.
Companies could benefit in up to 100% tax relief on specific items or plant and machinery.
So, our message is very simple, don’t forget about capital allowances. If you’re thinking about investing in a business asset, today could be the perfect time to proceed and you can benefit from savings through capital allowance.
If you have any questions or would like to know more, please call our team on 01993 706403 or e-mail enquiries@ngifinance.co.uk.