CURRENT TREATMENT FOR HISTORICAL EXPENDITURE

摘要

John purchased an office building in the centre of Norwich for £1.5m in 2002. During the current tax period, he investigates the possibility of claiming capital allowances on fixtures within the property such as the airconditioning, electrics and furnishings. It transpires that no previous owner has claimed on these items which were valued at £250,000 at the date of his purchase. John submits the claim for capital allowances and uses the writing down allowance to reduce taxable profits. At a 40% tax rate, he will save £80,000.