Services

Deloitte’s Gi³ UK Tax Depreciation team

Deloitte’s Gi³ UK Tax Depreciation team works with businesses to identify available tax reliefs, such as capital allowances, on the acquisition or development of their fixed assets.

The Tax Depreciation landscape in the UK is complex with a wide variety of reliefs available to businesses. As the UK’s market leading team in this area, Deloitte’s Tax Depreciation team has excellent credentials advising clients across all sectors. This gives our team a unique insight into the challenges our clients face, which we can bring to bear on each engagement.

Tax depreciation – focus on tax risk and data management

In recent years, there has been increased scrutiny of businesses’ tax profiles from both tax authorities and the markets.

In response, Boards are focused on monitoring and mitigating tax risk. Tax depreciation reliefs, such as capital allowances, provide a widely understood form of tax relief. They are supported by detailed legislation, case law, HM Revenue & Customs guidance and industry agreements and thus where claims are fully substantiated should not increase a business’s risk profile.

Businesses are also experiencing challenges with the systems and processes used to compute tax calculations.

Major capital projects often draw information from a variety of sources into the tax returns. Deloitte has a variety of solutions to help you efficiently manage and analyse data for tax depreciation calculations including a technology solution that facilitates a robust audit trail.

Effective management of data can also mean that tax teams have time to increase focus on value-add areas. For tax depreciation purposes, this could include consideration of tax incentives or the impact of new legislation, examples below.

Common tax incentives that may be available include:

  • Announced in the March 2021 Budget, a 130% super-deduction for companies incurring expenditure on main rate plant or machinery, together with a 50% first year allowance for special rate expenditure.
  • 100% relief for expenditure incurred on qualifying plant & machinery for businesses operating within the freeport sites.
  • 100% relief, or tax credits for loss makers, for defined energy/water efficient assets (for expenditure to April 2020).
  • 100% relief for assets used for R&D purposes.
  • 150% relief, or tax credits for loss makers, for expenditure on the remediation of contaminated land.
  • Structures and buildings allowances, potentially allowing businesses investing in commercial property to benefit from a tax deduction for the majority of their capital expenditure. There are of course some restrictions to this and reporting requirements that businesses need to manage.

How Deloitte can help

Deloitte’s Gi3 UK Tax Depreciation team has extensive experience in preparing capital allowances claims (which include a wide range of other tax reliefs) across all industries. Our dedicated team includes surveyors, engineers, tax specialist and accountants.

Each claim process is bespoke to the claimant company, and can depend on many factors such as industry sector, size, resources and existing systems. We work with businesses to prepare their claims, and ease the burden of the claim preparation process, while implementing the most relevant methodology.

The benefits we offer include:

Technical teams
Our team, which includes both tax technical and surveying credentials, has worked with clients in all sectors with many years of experience in the preparation of tax depreciation claims, giving us unrivalled technical expertise.

Technology enabled
We have developed analytical technology which facilitates the efficient preparation of claim documentation. This is particularly relevant for large data sets of repetitive annual expenditure.

Global reach
The international focus of our Gi³ practice helps our clients identify incentive opportunities on a global basis.

Let’s talk

Get in touch to meet our specialist team and discuss your fixed asset profile. Our global view and expert team uncover significant areas where we can add value, efficiency, accuracy and robustness to your process.

Contact our experts

Matt Smith

Matt Smith

Partner

Matt is a Tax Partner in Deloitte's Gi3 practice and leads the Regional Tax Depreciation team and also the Research and Development practice in Central Belt (Scotland). Matt is qualified both as a qua... More

Stephen Perry

Stephen Perry

Partner

Steve leads Deloitte’s Consumer Business tax depreciation practice, and advises property-rich businesses in all aspects of capital allowances and associated reliefs, including the deployment of system... More

Peter Millwood

Peter Millwood

Partner

Peter is a partner in the London tax depreciation team. Peter is one of four full time partners within Deloitte’s capital allowances practice. His team consists of over 50 full-time capital allowances... More

Andrew Brook

Andrew Brook

Partner, Tax

Andy is a partner in Deloitte’s award winning national Tax Depreciation practice with two decades experience advising on capital allowances related issues, transactions, claims and agreements with HMR... More