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The logistics sector is proving particularly resilient in the UK property market, with the increasing use of online retailers and their need to deliver those products.

IMH Advisory LLP provides Plant and Machinery Allowances (PMA) analyses for several clients in this sector.  We undertake a detailed fully disclosed approach, analysing the main contract costs, direct orders, fees and considering any capital contributions received. 

The overall level of PMA is typically between 10% and 25% of the total expenditure, depending on the extent of fit-out completed.

We also identify efficient energy and water efficient plant that qualifies for 100% Enhanced Capital Allowances (ECA).  This typically includes lighting, both internally and externally; boilers; sanitary fittings; VRF air conditioning systems and rainwater harvesting equipment.  Please note that ECA is abolished from 1 April 2020.

It is increasingly common to also install new Electric Vehicle Charging Points (CAA2001 s45EA).  These also qualify for 100% first year allowances, but only for expenditure incurred between 23 November 2016 and 31 March 2023.

Going forwards, the Structures and Buildings Allowance (SBA), will also apply to expenditure that previously obtained no tax relief.  This includes the major structural elements such as external walls, roofing, steel frames and internal walls and doors.  Landscaping does not qualify for SBA.