Capital Allowances and R&D Cost Recovery

Making the most of R&D Cost recovery and capital allowances

Most business owners will be aware of the benefits of claiming capital allowances against expenditure on plant and machinery but many remain unaware of other specialist allowances. As a result, many owners of commercial premises may have dormant tax benefits that have been overlooked.

Property Embedded Fixtures and Features on which capital allowances can be claimed may include:

  • Lifts and electrical systems
  • Heating and security systems
  • Sanitary ware and kitchens

Through enhanced Capital Allowances, businesses that invest in designated technologies that reduce energy consumption are able to write off 100% of the cost against taxable profits.

Research and Development Tax Credits are available to companies in every sector, not just those undertaking scientific research. HMRC figures (Sep 2015) stated that R&D tax credit claims totalling £1.75bn were submitted in 2013-14 and £11.4bn worth of claims have been made since the scheme was launched in 2000-01. However, it is assessed that the majority of eligible SMEs have still not taken advantage of this opportunity.

Expert associates will ensure that these tax benefits are utilised in the most efficient way for your circumstances.