News & Insights

Is Resilient the New Green? Written by M O’Ikenegbu May 2023   Introduction Climate change is a dreadful phenomenon slowly destroying the earth’s ecological structure.  It is increasingly seen as a major issue of global concern and significant efforts have and are still being made by local, national and international organisations to combat its devastating […]

Full Expensing October 2023   Background Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit (before calculating their tax liability), […]

AirBnB Furnished Holiday Letting (FHL) and Capital Allowances     Introduction Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit […]

Autumn Statement 2023: Capex Full Expensing Extended Permanently November 2023   Background Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable […]

HMO and Capital Allowances     Introduction Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit (before calculating their tax […]

Is Resilient the New Green? Written by M O’Ikenegbu May 2023   Introduction Climate change is a dreadful phenomenon slowly destroying the earth’s ecological structure.  It is increasingly seen as a major issue of global concern and significant efforts have and are still being made by local, national and international organisations to combat its devastating […]

Full Expensing October 2023   Background Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit (before calculating their tax liability), […]

Recent capital allowances changes   October 2023   Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit (before calculating their […]

Beyond Green Buildings Written by M O’Ikenegbu February 2019 Green buildings relate to concepts that include sustainable architecture, eco-housing, low carbon design, ecodesign, and green architecture, to name a few. They are designed and constructed to minimise environmental impact and are also referred to by the following terms: “sustainable buildings”, “green buildings”, “low-energy”, “energy-efficient”, “high- […]

Introduction to Capital Allowances March 2022   Background Depreciation of fixed assets charged in the accounts is not allowable in computing taxable profits. Instead, the UK government introduced capital allowances which is a form of tax relief that allows businesses which pay tax in the UK to deduct from their taxable profit (before calculating their […]

Super-deduction Cash Savings Ends in 12 Months: A review of the Benefit and What is Next in Store Written by M O’Ikenegbu April 2022     Introduction The super-deduction scheme introduced in Finance Bill 2021 to amend Part 2 Capital Allowances Act 2001, is a two-year temporary first year allowances (FYA)[1] for certain qualifying capital […]

Other forms of capital allowances Other forms of capital allowances such as mineral extraction allowances and dredging allowances exist. There are also other capital allowances schemes such as Business Premises Renovation Allowances (BPRA) in respect of disadvantaged areas and Enhanced Capital Allowances (ECA) in respect of energy and water efficient equipment, which have in recent […]

Research and Development Allowances (RDA) RDA is available in respect of assets used in the process of carrying out research and development (R&D) such as building, equipment and furniture. The benefit is claimed in full at 100% in the year the spend is incurred. Less than 100% can be claimed in that year, but the […]

Structures and Buildings Allowances (SBA) SBA was introduced on 29th October 2018 (operative date). It is available on structural and similar building related works like walls, floors and roofs, in respect of a non-residential business activity. It is only claimable at 3% straight-line deduction annually. SBA is available where the construction work commenced (and its […]

Plant and machinery allowances (PMA) PMA provide tax relief on capital assets such as business equipment qualifying as plant and machinery. Furthermore, there are three main types of PMA as follows: First-year allowances (FYA): This allows a full deduction of the costs incurred on certain qualifying capital assets in the form of plant and machinery, […]

Land acquired in a derelict state Land acquired in a derelict state for LRR is defined as land that is not in a productive state; and cannot be put into a productive state without the removal of buildings or other structures. To qualify as derelict land for the purposes of the relief, land has to […]

Land in a contaminated state Land is in a contaminated state only if there is something in, on or under the land which causes “relevant harm”, or there is a serious possibility that “relevant harm” will be caused. Land Remediation Relief is intended to assist in bringing back into productive use land that has been […]