United Kingdom

Capital Allowances 

Do you want to minimise your tax payments and retain more cash in your business?

 

Expenditure on fixed assets can be significant. Optimising the tax relief obtained will mitigate tax paid. The rules on tax relief for fixed asset are complex, however businesses need to make everyday decisions on acquisition, maintenance and disposal of fixed assets.

KPMG's Capital Allowances Team can help optimise tax relief to keep cash in the business.

 

What's on your Mind?

 

Businesses will face different issues depending on the nature of the expenditure and assets in question:

 

  • How to make efficient claims for ongoing annual fixed assets expenditure, and agreeing any approach with HMRC.
  • Understanding the rules and how to claim for major 'one-off' investment in new assets or facilities.
  • Understanding the relief available on property transactions, the impact of a disposal and how it can be managed.
  • Looking to be environmentally friendly and understanding the special reliefs available.
  • Identifying tax relief when dealing with a contaminated and/or derelict site.

If cash is critical, consider the tax relief you have obtained on fixed assets; have you claimed all, or made best use of, the relief available?  If not, can you do something about it?

 

Bringing you Peace of Mind

 

  • KPMG's Capital Allowances Team are a dedicated group of surveyors, accountants and tax practitioners who can help you obtain value from capital allowances and other tax relief available to your business.
  • Our aim is to understand your approach to the ownership of and investment in fixed assets, your business drivers for this investment and, most importantly, listen to your teams' objectives.  Using this knowledge, and our experience, we can tailor our offering to suit your requirements, enabling us to help deliver value to you.
  • Of course what we do will depend on the nature of your expenditure and the assets in question.

 

What's in it for you?

 

  • Tax relief on capital expenditure optimised, minimising tax payments, keeping cash in the business.
  • Tax relief obtained via efficient and effective approaches, minimising disruption to business.
  • For businesses with ongoing annual expenditure, developing systems to help mitigate time and expense of annual claims.
  • Ability to outsource consuming and costly activities to allow the business to focus on core issues.

 

Why KPMG?

 

  • We are a national team, enabling us to work locally with our clients. We have worked for numerous FTSE 250+ clients across all sectors, saving them millions of pounds in tax.
  • We have deep technical knowledge and experience in this area, allied to a strong but robust relationship with HMRC.
  • By linking into KPMG's wider property team you have access to the full spectrum of services and experience.

 

Case Study

 

  • For a healthcare company we reviewed five years of historic building expenditure, going back to original construction documentation. We identified £12m of additional tax relief resulting in £1.0m of immediate tax reclaims and future reductions in tax payments.
  • Our client acquired an office building for £18m. We established the prior claim history and were able to prepare a claim on assets under the new Integral Features regime. We identified an additional £1m of tax relief, over and above the amount agreed by the parties.
  • Our client incurred £7m in adding air conditioning (a/c) to their hotels. We identified that the core plant qualified for ECAs and agreed with HMRC that all related expenditure to install the new a/c also qualified for ECAs. The benefit for the client in npv terms was £700,000.
  • Our client acquired a site with naturally occurring methane gas. To deal with the problem the building was raised on 'stilts' to create a ventilated void. We agreed the £900,000 of additional construction cost incurred in creating the void was eligible for CLTR. The company also claimed the tax credit resulting in a cash repayment of £216,000.
  • For a retail client, we have updated their qualifying 'percentage agreements' across a variety of store types.  This was achieved with minimum additional analysis and we were able to incorporate an allocation to ECAs, thereby improving the timing of the tax relief
 

Contact

David Woodward

David Woodward

Associate Partner

KPMG in the UK

 

020 7694 4180

Email David