Plant and Machinery
If you own a commercial property, capital allowances relating to plant and machinery (P&M) are a valuable and underutilised form of tax relief. In fact, HMRC figures suggest that well over 90% of UK commercial property has unclaimed allowances available. The allowances are available to anyone incurring capital expenditure buying, building or renovating commercial property. This can be of virtually any type from shops to pubs and veterinary practices to hotels. The allowances can be claimed on a wide range of fixtures and fittings that are usually considered as integral parts of a building and not necessarily seen as potentially deductible from taxable profits.
Movable or Immovable…That is the question!
Most business owners and their accountants will routinely claim capital allowances for movable fixtures and fittings or plant and machinery as these items can be easily identified and more importantly quantified. They also understand that allowances are not available on ‘buildings’ as they are a non depreciating asset. What often get missed however, is the grey area between movable and immovable. It goes without saying that a computer is movable and the walls are immovable but what about kitchens, air conditioning, toilets, electrical and heating systems to name a few?
If you would like to explore whether you qualify for a claim on your property, we will be pleased to discuss your circumstances with no obligation.