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FULL EXPENSING

WRITE DOWN YOUR COMMERCIAL PROPERTY INVESTMENTS

Full Expensing, effective from April 2023 until March 2026, provides an unparalleled opportunity for businesses to fully deduct the cost of their qualifying plant and machinery investments against their profits. This means that for every pound you invest, you could see a tax reduction of up to 25p.

With Full Expensing, businesses can significantly diminish their tax liability and redirect those savings towards further advancements and growth.

THE CAPITAL ALLOWANCE ACT 2001

UNDER-UTILISED COMMERCIAL PROPERTY TAX RELIEF

The UK government’s proactive approach to fostering economic growth is evident in its introduction of Full Expensing. This initiative aims to address the UK’s longstanding business investment challenges and make the nation’s Capital Allowances regime among the best in the world. By offering 100% first-year relief on qualifying investments, Full Expensing builds upon the monumental success of the 130% Super-Deduction introduced in 2021.

To benefit of Full Expensing:

  • The investments must be in new and unused plant and machinery.
  • The assets should be used for a qualifying activity, such as trading or manufacturing.

Businesses have demonstrated a strong preference for Full Expensing due to its simplicity and generosity, making it an attractive option for enterprises looking to amplify their investment strategies.

Just as the Annual Investment Allowance (AIAs) empower businesses to reduce their tax liability, Full Expensing is another feather in the cap of Capital Allowance claims. These are specific tax reliefs designed for businesses to subtract some or the entire cost of an asset from their taxable profits. Capital Allowances encompass various types, such as AIAs, Writing Down Allowances (WDAs), First-Year Allowance (FYAs), and Structures and Buildings Allowances (SBAs), each catering to different business needs and investment types.

At HMA Tax, our dedicated team of tax professionals has an intricate understanding of Full Expensing and its implications. With our expertise, we guide businesses through the process, ensuring they capitalise on every available tax relief.

PARTNER WITH EXCELLENCE

THE UK'S LEADING CAPITAL ALLOWANCE SPECIALISTS

With over 7,000 claims completed, HMA Tax is trusted by thousands of commercial property owners, Accountants & Solicitors across the UK.

Our service is guaranteed to be fully HMRC compliant, meaning our clients have peace of mind when claiming their Capital Allowances with the UK’s leading independent specialists.

We regularly handle Embedded Capital Allowance claims for commercial property owners and property professionals, ensuring that they are processed quickly, efficiently and effortlessly.

Has my accountant already done this?

Probably not. It’s a highly specialised area of tax statute and requires very specific knowledge of this area as well as a specialist team that includes a chartered surveyor and a chartered tax specialist.

Will this affect Capital Gains Tax (CGT) on my property?

No, Capital Allowance claims do not effect the value of your property and have no impact on your Capital Gains position.

In fact, when buying or selling commercial property, a Capital Allowance claim from HMA Tax can have a positive impact on your overall position.

Will this cause a problem with HMRC?

Capital Allowances are part of standard business routines and are therefore claimed each year against cost clients incur to operate.Β  HMRC does not take issue with Capital Allowance claims on the basis we adhere to guidelines and the legislation applicable to each claim.

Fortunately, at HMA Tax we have a flawless, 100% success rate with claims we have made to HMRC and have never had an issue completing a claim with HMRC.

Are there any hidden costs?

Absolutely not. We look at claims for you on a results only basis, which means that if we do not find allowances that have been approved by HMRC, then we charge you nothing and any initial costs are covered by us. Our fee is completely linked to a successful outcome, so there is nothing to lose by investigating a potential claim.

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