Backdating capital allowances
Furthermore, when Capital Allowances in commercial property are claimed the cost of land and buildings should not be reduced in the note to the Accounts.What your accountant may be referring to is a tax return can be amended up to 2 years after the end of year. a company with a year ended 31 December 2013 can amend the return by 31 December 2015 and an individual has until 31 January 2017 in which to amend the 2014/15 tax return..
Pre trade expenses, as with other expenses, can either be normal expenses that are deductible when working out your profit or capital expenditure that is given tax relief through capital allowances.Back to the top If the expenses were incurred within seven years of you starting to trade, and the expenses would have been tax-deductible if you had incurred them while you were trading, then you can treat them as if they were incurred on your first day of trading and so claim them in addition to the other business expenses relating to the first period of trading.This rule does not apply to expenses that will form part of your accounts in any case for example costs of stock.Repayment claims – PAYE The following tables show the deadlines for taxpayers under PAYE: Self Assessment taxpayers ‘...repayments of tax will be made in respect of claims made outside the statutory time limit where an over-payment of tax has arisen because of an error by the Inland Revenue [now HMRC] or another Government Department, and where there is no dispute or doubt as to the facts.’ and repayment claims are limited to four years.A special relief exists (see below) which can provide relief in cases where the taxpayer is out of time for appeal.and can claim capital allowances on the cost of the shelving (as long as he has not elected to use the cash basis).
If Giovanni has elected to use the cash basis then the cost of the shelving is treated as incurred on and Giovanni can claim the cost as a business expense.
For example, if a car costing £25,000 with an emissions rating of 170 g/km is sold after 5 years, only £8,523 of writing down allowances will have to be obtained but its value is likely to be much less than the tax written down the value of £16,500.
Regularly, when the taxpayer is a small company, the cost of a car is the only expense getting an 8% writing down allowance so when the car has gone, the expectation is that there will be a balancing allowance for the remaining value in the pool.
If you are considering a property sale please contact us.
Whilst the purchase agreement may have validly detailed moveable assets (chattels) the immoveable assets (fixtures) within a property must either be allocated on a just and reasonable basis in accordance with s5 or be the subject of an election under s1 – an arbitrary figure included in the contract is not binding on either party. Tax legislation determines what Capital Allowances can be claimed.
The tax treatment of these capital costs will depend if you are using the accruals basis or cash basis to prepare your accounts.