Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith and ready to assist you with your problems. I regret that I have little good news for you. Your accountant would appear to be correct in his advice and his refusal. Capital is needed and someone must provide it. It is regrettably a common misconception that capital investment in a project attracts tax relief. This is not generally the case. For say plant and machinery capital allowances may kick in to reduce liabilities, but that is not always the case. Let us say in a year the cost of running a contract gives a loss as opposed to a profit then that loss could be carried back to the prior year and some or all of the tax paid might be reclaimed. Someone somewhere will have to come up with the moneys to fund the contract(s). I hope this answer has been of some help to you. Please do not hesitate to come back to me using the Reply Tab below if you seek further information.