Corporate partners eligible for full expensing

Partnerships with corporate partners are able to claim capital allowances that are available only to companies within the charge to corporation tax HMRC has confirmed. This covers first year allowances such as full expensing and the super-deduction.

The Chartered Institute of Taxation reports that following discussions with HMRC the department has made changes to its Capital Allowances Manual to this effect.

This point was clarified by Nigel Huddleston financial secretary to the Treasury who said in the Finance Bill debate on 10 January (column 349) ‘a corporate partner is eligible for full expensing but an unincorporated partner is not’. He added that the annual investment allowance of £1 million covers the ‘investment needs of almost all unincorporated partnerships’.

Claims made via the partnership’s corporation tax computation will benefit the corporate partners of the partnership in proportion to their...