Repairs to Business Assets
November 7th, 2011
When you spend money repairing a capital asset used in your business to generate profit it make sense to structure & execute the repair in such a way that you can claim the costs against trading profits . You do this by ensuring that the repair does not enhance the function of the asset & by re-using as much of the original material of the asset as possible in it’s repair. The asset can be better but must not be an improvement on the function or durability of the original asset or the claim may fail. Claiming the costs against trading profits gives you greater tax relief sooner than doing so through capital gains, the alternative method applicable where the asset is deemed a new rather than better asset.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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