Category Archives: Annuities

Capital allowance is the deduction available to UK tax payers while computing taxable income. In UK, depreciation is not an allowable expense and its place is taken by capital allowance. Both depreciation and capital allowance become applicable when you buy … Continue reading →

Capital allowances are the amounts allowed to be written off as expenses when you incur long-term capital expenditure. You cannot write off the entire cost of long-term assets (that will be used over a number of years) as an expense … Continue reading →

In other articles we have seen that when a disposal event occurs, taxpayers are subjected to a balancing charge or allowed a balancing allowance. A balancing charge involves charging back excessive capital allowances claimed and balancing allowance provides relief for … Continue reading →

Most of us would like to save on the taxes that we pay to the government. Businesses pay taxes on their business profits. By reducing the amount of profit that is taxable, we can save on taxes. You cannot show … Continue reading →

The Government announced that it would be clamping down on the ‘aggressive’ tax avoidance schemes being used by some large firms, who rent machinery and then claim excess tax relief. Businesses are able to claim capital allowances when they enter … Continue reading →

The Finance and Leasing Association (FLA) is calling on the Treasury to extend tax relief on energy efficient equipment to the asset finance sector. The association believes that the extension would benefit small businesses and is calling specifically for the … Continue reading →

Every time a commercial property owner spends money buying or improving it, there is a strong chance they can offset that expenditure against profits or general income for tax purposes – a little tapped resource offered by the Inland Revenue. … Continue reading →

Up to late 19th century (1878 to be precise) there were no capital allowances. In 1878, a “wear and tear” allowance was introduced for traders in plant and machinery by allowing them to reduce their income by the allowance amount. … Continue reading →