Capital Allowances on Plant

At present purchases of qualifying plant and other equipment can be written off against your taxable profits. Tax relief is obtained by utilising the Annual Investment Allowance. For the current tax year, 2011-12, this amounts to a 100% write off with a limit of £100,000. As with most opportunities all good things come to an…

VAT on hot food

At present the more you prepare food for consumption, the more likely the supply will be considered a standard rated supply for VAT purposes. HMRC turned their nose up when an EU case recently came to a different conclusion. A German trader succeeded in having the supply of a hot sausage treated as a supply…

P11d Dispensations

A dispensation is a notice from HM Revenue & Customs (HMRC) that removes the requirement to report certain expenses to them at the end of the year on forms P11D or P9D….Once granted, dispensations last indefinitely.

Capital allowances and property

Landlords of residential property are at a disadvantage when it comes to claiming capital allowances on plant and machinery. Plant in a ‘dwelling house’ does not qualify for capital allowances. It is, however, still possible to claim capital allowances on plant installed in common areas. Common areas, for example, in a block of flats. Commercial…