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Claiming capital allowances
Harness the full value of your capital expenditure
Investment in R&D often goes hand in hand with expenditure on capital assets such as commercial property and equipment. We deliver robust capital allowances claims that harness the full value of your capital investments and support further growth. This ensures you're making the most of funding opportunities across the full innovation toolkit.
Capital allowances: the fundamentals
Capital allowances are tax reliefs that enable businesses and individuals to reduce their taxable profits by claiming deductions on eligible capital expenditure, such as equipment and property.
What’s the time limit on claiming capital allowances?
Unlike with some other forms of tax relief (such as R&D) there is no time limit on claiming capital allowances but first year allowances must be claimed in the period in which the expenditure is incurred. This differs from R&D tax relief where the time limit is two years from the end of your accounting period.
There are three main types of capital allowances associated with buildings – general pool, special rate pool and structures and buildings allowances – each with their own rate of relief, and also a number of special first year allowances.
Our role is to identify all the relevant allowances and calculate your claim’s value.
Our capital allowances explained page provides further details.
Claiming research and development allowances (RDAs)
If your capital expenditure relates to equipment and facilities used to carry out qualifying R&D activities, your business could be eligible to claim research and development allowances (RDAs).
If your business is investing in R&D, you need to investigate how capital expenditure is used in your development of new products and processes. There may be an opportunity to effectively minimise your tax liability. As the UK’s leading R&D tax relief consultancy, our expert team is perfectly positioned to advise you how to optimise your use of RDAs in the context of both your R&D tax relief and your wider capital allowance claim.
If you’re spending money on buildings or special rate assets relating to your R&D, you may be missing out on valuable deductions.
Claim R&D tax reliefs with ForrestBrown
There’s no one-size-fits-all approach to accessing R&D tax advice. At ForrestBrown our team of experts adapt our tried-and-tested methodology to fit your business.
How to claim capital allowances with ForrestBrown
By claiming capital allowances with ForrestBrown, you benefit from our award-winning tax expertise. Our specialists analyse and translate fixed asset registers and cost information, producing rigorous capital allowance claims that reduce your tax liability.
Our approach to claiming capital allowances is flexible. At ForrestBrown our team of experts mould our capital allowances process to suit your specific needs.
Below are some of the steps you can expect as part of your engagement with our team:
Capital allowances claim process
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1
Discovery and assessment
The first step in our engagement is us scoping your unique requirements. Meeting with your dedicated project lead, our expert team will take the time to get to know you and your business so that they can map the capital allowances relevant to you and start to identify the information needed to create your claim.
Do you have access to the specialist expertise you need? Our team combines award-winning tax expertise with hands on commercial property experience.
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2
Information gathering, analysis and survey
Our specialists will assess the capital expenditure you have incurred on your assets and determine whether a claim is possible. We carefully assess your portfolio to identify the full extent of the opportunity. Where it would add value, our team undertakes a site survey to enhance their understanding and gather evidence to support your claim.
Would you value a fresh perspective on your portfolio? We will review your expenditure and claim history to identify opportunities.
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3
Creating your capital allowances claim
Next, we will develop a bespoke methodology based on your records and calculate the value of your claim. We will document your claim explaining how your assets, expenditure and interests have been assessed and what the projected value of your claim is, including your first-year savings.
Are you confident in the methodology behind your claim? We’ll explain clearly how we’ve arrived at the value of your claim.
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4
Approvals and submission
We will share our reports with you for approval and will explain our findings. We will then either amend your Corporation Tax return (CT600) for you or work with your accountant to do so.
Do you want to work with a member firm of the Chartered Institute of Taxation (CIOT)? Our team will ensure that all the right steps are followed.
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Proven success
Glencar Construction Ltd
“ForrestBrown completed a thorough analysis and identified additional expenditure which we had previously missed. This led to a significant improvement in the tax relief we were able to claim.”
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HMRC enquiry support
Do you want peace of mind that your claim can withstand scrutiny? We are committed to supporting you with any queries which arise.
In the rare event of HMRC enquiring into your capital allowance claim, we will work to resolve this for you.
Our capital allowances team
At ForrestBrown we bring the vast experience we have gained supporting innovative businesses on R&D tax relief claims to our capital allowances work.
Working alongside your finance and property teams our expert advisers act as a bridge to ensure that claims are robust and uncover your full entitlement.
These include chartered tax advisers, chartered accountants, chartered building and structural engineers, and lawyers with direct experience from across a wide range of sectors including engineering, manufacturing and retail.
Our capital allowances team is led by director Peter Reynolds ATT (Fellow) ICIOB. He offers clients more than 20 years’ experience working on asset taxation issues, including for FTSE100 companies and has a background in project management in the construction sector.
How much does it cost to claim capital allowances with ForrestBrown?
- Our fee can be calculated as a percentage of your first-year tax saving or alternatively we can discuss other options to suit your requirements.
- It covers a completely end-to-end service, inclusive of all costs except for travel expenses should site visits be required.
- It also includes a full review of your eligibility for all innovation incentives.
Realise significant value from your capital expenditure
Get in touch with our team of experts to discuss your specific needs.
- Telephone
- 0117 926 9022
Our insights
ForrestBrown provides regular insights on incentives from across the innovation toolkit, including capital allowances, R&D tax relief, Patent Box and grants.
