Covid-19 Capital Allowances – are you entitled to this tax relief?
Given the current economic uncertainty as a result of Brexit, or the recent outbreak of Covid-19, it has never been more important to ensure that your tax reliefs are maximised.
The government has created a series of loans and grants to assist with the costs associated with your business and its temporary closure as an effect of Covid-19.
This means you could borrow money from the government. However, like all loans, this will need to be repaid and only the first 12 months of interest are to be covered by the government.
If you have carried out renovation works, or acquired a property in relation to your business or trade at any time we may be able to help.
This relief is not repayable and could be an essential lifeline in the currently uncertain environment. In some instances where expenditure has been incurred on environmentally beneficial assets, or in remediating contaminated land and the company incurring the expenditure is loss making, they are entitled to a cash tax credit.
To calculate the relief, we can prepare a report based on information which you provide to us. We can do so initially without a site visit. Where further detail is required, we can do so at a later date to ensure we unlock the initial repayment of tax already paid.
We have many clients who were previously unaware of this method of relief and as such this is always a welcome relief. This is not an avoidance scheme nor a form of tax evasion. Capital Allowances are a legitimate method of tax relief and the legislation can be found in Capital Allowances Act 2001.
This factsheet was written by our colleagues at MHA Tait Walker.