Recovering capital expenditure through tax relief

Depreciation is not available for fixed asset investments in UK tax calculations. Instead, capital allowances provides tax relief to improve the efficiency of investments.

A&M’s Capital Allowances team creates significant added value for clients embarking on investment projects, delivering material results with a combination of sophisticated technology and expert advice.

We work with any company, partnership or individual incurring capital expenditure, across most sectors and asset classes.

The service in depth

Our capital allowance service is designed to be ‘cradle to grave’, engaging with clients from inception to conclusion of projects. Key steps of our service delivery include:

• Initial due diligence to assess claim entitlements;
• Forecasting of allowances;
• Detailed claim reporting;
• Reconciliation to fixed asset additions;
• HMRC negotiation support to agree claims

We invest time in upfront scoping that delivers value to the client from an early stage. Reports include assessments of likely HMRC enquiries, enabling rapid responses and strong relationship management. During projects, our technology-powered forecasting capabilities automate data analysis, helping clients get to meaningful answers on potential allowances more quickly.

Our work helps clients take advantage of capital allowance opportunities in a compliant and timely manner that preserves a strong relationship with HMRC.

A&M is able to help clients with more specialist workstreams such as short life asset accounting and prior-year audits. We can also helps clients with claims under Australian Depreciation rules and as a single source provider for US cost segregation and UK Capital Allowances with the A&M USA cost segregation team.

Did you know?

On disposal of an asset, there is a two-year window in which to agree and elect the disposal value for capital allowances to avoid potential clawbacks.

The underlying capital allowances asset can also be utilized when marketing the asset for disposal.

Results

In the last five years, A&M’s capital allowances team has identified in excess of £1 billion of capital allowances for clients.

Where HMRC negotiations are required, A&M has secured over 95% of the original claim submitted in all cases.

Why A&M?

With decades of experience advising clients in a hands-on manner, our team boasts both chartered surveyor and chartered tax advisor expertise, helping A&M deliver technical and strategic advice that takes advantage of detailed sector knowledge.

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