This tax relief applies to plant & machinery, buildings and research and development and enables a business to deduct a proportion of these costs from their tax bill.
A good accountant or other business advisor will have a standard routine for taking companies through an assessment of what they can claim, with the aim of collecting up all applicable capital allowances and maximising the tax benefit to their clients. However, a good capital allowances expert will look further, winkling out previously un-thought of items of allowable capital, embedded deeper in the business.
Uncovering this extra layer of allowable items can add tens or hundreds of thousands of pounds to a business’s total tax savings. Plant and machinery is not a term defined in law and in practice it covers a wide range of items, extending far beyond just movable items and fixtures & fittings such as ‘machines, cars, tools, equipment, computers, software, furniture, etc’ that will appear on routine check lists. It can cover items hidden in the very fabric of a building – known as, ‘integral fixtures’.
A key difference that a capital allowance expert offers is adding value to the work of a good but non-specialist accountant: The accountant’s review normally begins and ends with analysing invoices and following the paper trail. A capital allowance expert will visit the property in person and identify items that are invisible within the paperwork.