With 50% first year allowances now scrapped and replaced by annual investment allowances covering embedded fixtures and integral features with 20% and 10% writing down allowances located accordingly. Is it any wonder many business owners are confused and are not claiming their full Capital Allowance entitlement.

A professionally prepared Capital Allowance claim could generate a substantial tax refund with significant tax reduction year on year. Capital allowance claims equate up to 35% of your freehold cost!

Capital Allowances arise from capital expenditure on:

CA23153 – PMA: FYA: Expenditure on cars with low carbon dioxide emissions

Businesses of all sizes can claim 100% FYAs on capital expenditure on a car provided that:

• • the car is “unused and not second hand”, and is first registered on or after 17 April 2002;
  • it is an electric car, or
  • a car with CO2 emissions of not more than 110gm per km driven.
  • the expenditure is incurred between 17 April 2002 and 31 March 2013.

The 110gm per km driven limit applies to cars bought on or after 1 April 2008. For cars bought before that date the limit was not more than 120gm per km driven.

New cars are “unused and not second hand”. You should accept a car is unused and not second hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser, or used as a demonstration car. A car’s carbon dioxide emissions figure is shown on the vehicle registration document (the “V5″). Emissions figures for most makes and models can be obtained from the:

• • HMRC internet site for CO2 emissions;
  • Vehicle Certification Agency’s website at www.vca.gov.uk

Detailed guidance on this scheme can be found under specialist publications in the Practitioner Zone on the HMRC Internet site.

The definition of a car follows the normal meaning in CAA01/S81 (CA23510). Expenditure on a taxicab can also qualify for 100% FYAs if the cab meets the conditions above, even if it is not a car within the meaning of Section 81.

The legislation is in FA02/S59 and FA02/Sch19 which inserts a new Section 45D into CAA01. The legislation was amended by FA2008, which extended the time when expenditure must be incurred to qualify for this 100% FYA so that it ends on 31 March 2013. FA08 also reduced the emissions limit from 120 to 110gm per km driven.

Changes to the rules for cars costing more than £12,000

The special rules for cars that cost more than £12,000 (CA23520) do not apply to qualifying cars with low CO2 emissions. This means the annual writing-down allowances are not restricted to £3,000, and there is no restriction to the car hire or leasing expenses a business can deduct for tax purposes.

You may have a case where a car that was leased out before 1 April 2008 satisfied the emissions limit when the leasing began but does not satisfy the reduced limit that applies from 1 April 2008. The car is still exempt from the lease rental restriction until the leasing contract ends. Once that contract ends any future leases of the car will be subject to the lease rental restriction.

For further information on how you can make this claim, please contact one of our advisers at Salmon Business on 01246 293011

Alternatively, visit us at www.salmon-business.com

Testimonials are indeed a very powerful aid in providing reassurance to anyone who may be caught in two minds.  Below are two recent testimonials regarding VAT refunds on Care Homes.

Take advantage of the feedback from the people who have already gone through the Kingscrest process and hear first hand how simple and easy it is to make your claim.

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“A close friend with several Care Homes recommended I should also enquire as to whether we were suitable for the VAT claim. The team explained all about Kingscrest and how it could benefit our business. They had a different approach to others who had contacted us, probably because they are VAT specialists with many years of experience in the care sector. Their staff were extremely professional working discreetly in managing the whole claim and after the initial meeting kept us informed all the way through until repayment was in our bank. They really are the people to speak to about your potential VAT claim.”

Dr Saxena (S&S Healthcare Limited)

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“As a group with a dozen Care Homes we are constantly receiving calls and mailings from firms claiming to be able to get VAT back for us. I was finally persuaded, by a fellow Care Home operator, who had done a claim successfully. Because I was assured that the process wouldn’t cost me a penny until I had recovered the VAT, I agreed to do this on one Home initially. I was so impressed with the result both
in the way the process worked and with the value of the claim, that I had no hesitation in agreeing to have the rest of my Homes reviewed. This has brought about significant benefits to the group. I can see now why they have handled a large number of claims and I recommend speaking with them about a VAT claim for your home.”

John Hill (Heathcotes Limited and Hillcare Limited)