t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

What are integral features?

Source: HM Revenue & Customs | | 24/10/2017

The term capital allowances is used to describe the allowances available to businesses to secure tax relief for certain capital expenditure. The rules that govern the purchase of capital equipment such as computer equipment, vehicles and machinery by businesses are different to those for day to day business expenses claims.

A Writing Down Allowance (WDA) is available for plant and machinery expenditure that exceeds the Annual Investment Allowance (AIA) and which does not qualify for a First-Year Allowance as well as for residual balances of expenditure that has been carried forward from the previous accounting period. The WDA is based on the cost of the items in the year they are acquired.

There are two rates of WDA for plant and machinery. To calculate them, you first group your expenditure into different pools:

  • the main pool - this includes expenditure on most items - the rate is 18%
  • the special rate pool includes special rate expenditure including long-life assets, integral features, certain thermal insulation and some cars - the rate is 8%.

Integral features are:

  • lifts, escalators and moving walkways
  • space and water heating systems
  • air-conditioning and air cooling systems
  • hot and cold water systems (but not toilet and kitchen facilities)
  • electrical systems, including lighting systems
  • external solar shading

Planning note

It is important to note that the capital allowances regime for integral features only applies to the above list and that buildings themselves don’t qualify for capital allowances. However, it is worth taking professional advice if you have, or are considering the purchase of, a commercial building with integral features in order to maximise claims for tax relief. Please call for more advice.



 

Latest News

  • Budget date remains to be confirmed

    17/09/2018 - More...

    The Chancellor Philip Hammond, has stated before the House of Lords Economic Affairs Committee, that he is not yet in a position to announce a date for the Autumn Budget 2018

  • Help-to-Save scheme launched

    17/09/2018 - More...

    The new Help to Save scheme for people on low incomes was officially opened with effect from 12 September 2018 following an 8-month trial. The new scheme allows those in work

  • CGT record keeping

    17/09/2018 - More...

    The annual Capital Gains Tax (CGT) exemption for individuals is £11,700 for 2018-19. A husband and wife each benefit from a separate exemption. Same-sex couples who acquire a legal

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login


Copyright © 2018 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy | Privacy Policy