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Super-deduction Good News!

The new Super-deductions announced in the March 2021 Budget were specifically excluded for Companies that incur expenditure on assets for leasing such as Landlords.

On the 18th May 2021 an amendment to Clause 9 of the Finance Bill 2021 confirmed that the 130% Super-deduction on Main Pool assets (increased from 18%) and 50% Special Rate Pool assets (increased from 6%) will now be available to leased plant. This will mean that property companies will be able to benefit!

So if a landlord spends £1m on main pool items such as kitchens, toilets, carpets and fire alarms etc.. they can deduct £1.3m against their rental income in year 1 rather than 18% (i.e. £180k).

On Special Rate Pool expenditure such as heating, air conditioning and lifts, if a landlord spends £1m they can deduct £500k in year 1 rather than 6% (i.e. £60k, with the remaining 50% to be applied against the Annual investment Allowance (AIA).

These Super-deductions are still only available to companies and not individuals or LLP's and apply to new expenditure on plant and machinery (i.e. unused and not second-hand) up to the 31st March 2023.

Specific claw back rules apply on disposals within certain timeframes.

Specific details will be published within HMRC guidance notes and the Finance Act.

Our services

Preparation of capital allowances reports
We prepare fully disclosed capital allowances reports for both property acquisitions and enhancement projects.
Strategic advice
We provide strategic advice throughout the property cycle including s198 elections, contributions and land remediation relief.
Due diligence
We liaise with the client and their advisors to ensure that the capital allowances position is protected during the acquisition, disposal and leasing of property.
Initial reviews
We offer a free initial review to establish if a capital allowances opportunity exists. This review is carried out with minimal time and disruption to the client.
Negotiation with the tax authorities
We apply an enquiry mitigation strategy to all of our client work. Our experience and extensive knowledge of tax legislation and case law enables us to assist with potential HMRC enquiries.

What our clients say

David and the team are very efficient, proactive and always available to assist
Ines Ramirez, Finance Director, Pontegadea
Any apprehension of switching business to Colne were quickly put aside with David's personal and fresh approach to the world of capital allowances.
Hitesh Patel, Group Financial Controller, Barwood Capital
"Colne Capital Allowances provided us with a professional strategic approach"
Paul Crosbie, Fund Manager, M&G
'They consistently deliver a high quality service combined with a personable and professional approach'
Chris Warren, Managing Director - Fund Services, Patrizia
I have always been impressed by their attention to detail, understanding of complex tax legislation and willingness to help
William Munden, Head of Finance, LBS Properties
Their client service is exceptional, always very reactive and responsive
James Deane, Finance Director, Chancerygate
David and his team are efficient and highly responsive
Martin Bramhill, Group Tax Manager, Helical
David has enabled clients to claim all capital allowances they are due
Andrew Noton, Partner - Lubbock Fine
they continue to impress with their professionalism, expertise and timeliness
Michael Hughes, Managing Director - Whirledge & Nott
"The process was seamless and the results outstanding."
David Butcher, Upham Pub Group
"We find their charges very acceptable, and the success rate on our cases has been 100%"
Martin Waller, Investra Capital & Pelham Associates
The relationship gives me peace of mind, support in abundance and a 'can do' attitude
Gill Kreft, Pendine Park Care Organisation

Expert industry insight

Budget 2021 (27th October)Annual Investment Allowance (AIA) – Extension of £1m AIA- 31st March 2023
Is 2021/2022 the best time to carry out qualifying expenditure
Read more
Super-deduction Good News!
Potential good news for Landlords as leasing restriction may be amended.
Read more
New Changes - Budget 2021 (3rd March)
Exciting new changes to the capital allowances regime
Read more

Get in touch

If you would like to discuss our services in more detail or would be interested in a free initial review please contact us
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London Office
20-22 Wenlock Road
London
N1 7GU
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London Office 0203 603 5250
Colchester Office 01206 820077
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Colchester Office
2 Bawley House
Walter Radcliffe Road
Wivenhoe
Colchester
Essex
CO7 9FG
 ©2022 Colne Limited is a limited company (Registration Number 07851924) trading as Colne Capital Allowances.
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