Capital Allowances FAQ’s
Can I make an historic claim?
Yes. If you still own the asset you can start claiming in the first year of your accounts that are open.
Can I claim on my property held in a pension fund?
No, because the pension fund does not pay tax. If you don’t pay tax you don’t get tax relief.
How can I make a successful claim for ECA’s?
Obtain the cost information from the installer and proof of what has been installed. Request the Operating and Maintenance manuals (O&M’s) to check against the Energy Technology List (ETL).
Do I need to consider Capital Gains Tax (CGT) alongside my Capital Allowances claim?
Claiming capital allowances on your fixed plant and machinery will not reduce your CGT base cost if you sell your property for a profit. It is more complicated if you sell at a loss and you are advised to discuss your CGT position with an accountant.
Is there a time limit for claiming the allowances?
Yes, various time limits exist depending on when you incurred the expenditure but this does not always mean allowances are lost.
How do I make a claim?
You analyse the actual cost information and prepare a report detailing what costs you are claiming allowances on. You claim the allowances via your tax return.
I have carried out a fit out in my leased property. Can I claim the capital allowances?
Yes, you can make a claim. Tenants can claim against their leasehold additions.
Can landlords claim on a tenant’s fit out costs?
Yes, if they have made a capital contribution to the tenant fit out works. For example, carpets and floor boxes.
Can I claim allowances on my residential block?
Only on communal areas. You can’t claim allowances on a residential dwelling. This mean anything beyond the front door.
I am a developer. Can I claim allowances on the properties I build?
No, because you hold the properties as trading stock.
I am selling an investment property; Will I suffer a tax claw back on sale?
You will be able to keep all the allowances even after you have disposed of the property.
Can I claim allowances on VAT paid?
Yes, on all non-recoverable VAT that you are charged.