What they are and how they can reduce your tax bill? In this informative episode, Shaz provides the answers and explains why capital allowances are one of his favourite tax allowances.
Capital allowances can make a huge difference particularly when you are buying commercial property but can be effectively used in a range of situations. If you want to know if you can claim then this is a must-listen podcast
KEY TAKEAWAYS
When you spend money on capital equipment, plant, and machinery you can reduce your tax and sometimes completely eliminate it
Its anything that is fixed to a building such as air conditioning, suspended ceilings, smoke alarms and central heating
If you don’t use your capital allowances in a particular year you can carry them forward into the next year
The annual investment allowance means you can write off up to 200,000 on plant and machinery
The Government is incentivising businesses by allowing an acceleration of up to a million pounds until 2022
You need to review the structure of your business to make sure you are making the best use of capital allowances if you are purchasing equipment
You cannot claim capital tax allowance on cars which the business owns
If you own a residential property you can’t claim capital allowances but if you own an HMO you can claim
If you are buying property through a SSAS you can’t claim because a SSAS doesn’t pay tax
You need to do your calculations to see if it’s worth buying through your pension
When you are buying commercial property there may be capital allowances to be claimed from the purchase
BEST MOMENTS
‘Capital allowances are one of my favourite tax allowances’
‘Make sure you don’t miss out on this allowance as it can really be a game-changer if you are scaling up’
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
YouTube.
