Joe Brough looks at some tax planning opportunities for companies, with the end of the current financial year looming for corporation tax purposes.
This article briefly highlights some tax planning opportunities available to limited companies ahead of their year end to reduce tax liabilities and maximise profit extraction by the effective use of allowances and reliefs.
Capital allowances
When a company incurs capital expenditure for their business, capital allowances can be claimed, which will reduce the company’s taxable profits.
Capital allowances are available at various rates depending on the type of expenditure incurred. To ensure the most tax-efficient use of allowances, businesses will need to analyse the costs between the various categories.
The main categories of allowances are:
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Annual
