Claiming Capital Allowances
Episode description
Shaz goes through when capital allowances can be claimed and when they can’t. He uses a specific example of serviced accommodation and looks at how you can minimise your potential exposure both now and in the future in this informative episode
KEY TAKEAWAYS
- Serviced accommodation units have an annual investment allowance, you can claim all of the capital allowances up to a certain amount at one time
- If you sell and there’s a loss you get a 19% tax saving on the loss, called a balancing allowance
- You need to be careful about the amount you claim on capital allowances
- If you are going to keep the business for a number of years claim the annual investment allowance upfront
- When it reverts to buy to let there are no capital allowances
BEST MOMENTS
‘When you sell, if the person buying is quite savvy, they will ask what you have and haven’t claimed’
‘Don’t claim capital allowances too quickly if you are intending to sell’
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of
income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: