How capital allowances work
- Identify qualifying assets. Tools, machinery, computers, vans and equipment used in the business.
- Use the annual investment allowance. Claim 100% of the cost, up to £1 million a year, against your profit.
- Consider full expensing. Companies can claim 100% relief on qualifying new plant and machinery, with no annual cap.
- Use writing down allowances for the rest. Assets outside the above are relieved gradually, at 18% or 6% a year depending on the pool.
Why it matters
Claimed properly, capital allowances can wipe out a large slice of your tax in the year you invest. Missed or mispooled, they quietly cost you. Cars, integral building features and second hand assets each have their own rules, which is where expert help pays for itself.
Investing in equipment this year?
Timing and pooling capital allowances correctly can bring forward thousands in relief. TaxTune identifies every qualifying asset and claims the maximum you are entitled to.
Let us maximise your capital allowances
We identify qualifying assets, apply the annual investment allowance and full expensing where they help, and pool the rest correctly. Fixed fee.
Frequently asked questions
What are capital allowances?
They are tax relief for spending on equipment, machinery and other qualifying assets. Instead of deducting the cost as an ordinary expense, you claim it through capital allowances.
What is the annual investment allowance?
It lets most businesses claim 100% of the cost of qualifying equipment, up to £1 million a year, against their profit in the year of purchase.
What is full expensing?
It lets companies claim 100% relief on qualifying new plant and machinery with no annual cap, alongside the annual investment allowance.
Can I claim capital allowances on a car?
Cars do not qualify for the annual investment allowance and are relieved through writing down allowances, at a rate that depends on their emissions.
What are writing down allowances?
They give relief gradually on assets not covered by the annual investment allowance or full expensing, at 18% a year for the main pool and 6% for the special rate pool.