03.06.08

Introduction of integral features gives unexpected benefits

Although the new 10% rate of writing down allowance for integral features introduced in April reduces the cash flow benefits of capital allowances claims, there is an unexpected benefit.

If a property has been acquired after 31st March and the vendor wants to enter into a CAA 2001, section 198 Election there is almost certainly an additional claim that the purchaser can now make. This is because general power and lighting and cold water installations were not usually allowed as plant or machinery by HMRC but the changes introduced in April mean they can now be included in a claim. There is also the new environmentally friendly plant category which may also enhance the claimable items.

For more information or an estimate of what could be claimed on your property, email our helpline@ca-4.co.uk or call 01905 619224.

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