Capital Allowances are a valuable form of tax relief available to anyone incurring capital expenditure buying or building commercial property which can significantly boost the post-tax yield of an investment as well as potentially generating immediate cash value via tax repayments through a review of current and historic expenditure. We had worked with a manufacturing client who had incurred a significant amount of expenditure purchasing new manufacturing buildings and equipment. The client was already familiar with Capital Allowances and R&D Tax Credits, but did not consider making claims for Research and Development Allowances (“RDAs”).
The good news is that there is no time limit for re-categorising expenditure previously categorised as non-qualifying. However, with RDAs there is a 2 year time limit from the end of the claimant company’s accounting period (similar to R&D Tax Credit claims).
Have you incurred any capital expenditure (i.e. purchase any land or buildings, plant or machinery or refurbished any existing property) in the past few years that could attract this generous tax relief?