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That old boiler: Repairs or improvement?

Shared from Tax Insider: That old boiler: Repairs or improvement?
By Lee Sharpe, June 2024

Lee Sharpe looks at tax aspects of modernising property and the risk of disallowance as improvements that constitute capital expenditure, losing income tax relief in the property business. 

The government (HMRC) has become increasingly worried about the volume of small and medium-sized enterprise research and development (R&D) tax credit payments where a company claims to have undertaken eligible R&D activity (and it is important to keep in mind that only certain types of R&D may qualify – there are a lot of criteria).  

Roughly a year ago, HMRC delegated much of its scrutiny of R&D claims to its Individual and Small Business Compliance (ISBC) department, whose ‘Campaigns and Projects’ team (that typically deals with high-volume ‘One to Many’ or ‘nudge’ letter scenarios such as where bank interest income appears to be missing from tax returns) is on the case.  <>

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