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.



Accounts

We specialise in preparing end of year statutory accounts for your business, in line with HM Revenue & Customs legislation:

Sole Traders & Partnerships
Limited Companies
Limited Liability Partnerships
Property Management Companies
Property rental income accounts

Read More

Bookkeeping

We can adivise on the best bookkeeping options for your needs and budget, if you would prefer to do the bookkeeping yourself.

There are a number of excellent options including Sage desktop software and market leading online solutions, such as Kashflow & Xero.

Read More

Payroll

ejbc payroll

We can set-up and run your payroll scheme or advise on:

Setting up a new payroll system
Day to day payroll processing
Dealing with PAYE and NI deductions
Completing your end of year returns
Holiday & Statutory pay
Stakeholder pensions

Read More

Start Ups

Starting a Business is an exciting opportunity but at the same time can be daunting.

Why not let us take some of the stress away. We are on hand from the outset to help you through many of the challenges of getting your business up and running successfully.

Read More

sage accountant partnerchartered institute of taxationicaew firm
sage onekashflowxero partner

Search

Contact Us

Office 1 Details

EJBC Chartered Accountants
The Rectory, 1 Toomers Wharf, Canal Walk
Newbury
Berkshire
RG14 1DY

Tel: 01635 46174

  • info@ejbc.co.uk

Newsletter

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

» Sign up for the Newsletter
» Login

 

Twitter Feed