Capital Allowances

Claiming capital allowances on business assets and equipment to reduce your Corporation Tax bill.

Calculating Hybrid Rate of Writing Down Allowance

From April 2026, the main rate of writing down allowance for capital allowances is decreasing from 18% to 14%. If your accounting period straddles this date, you cannot simply use either the old or new rate — you must calculate a hybrid rate that reflects the proportion of you...

4 min read

Full Expensing and 50% First Year Allowance

If your company buys qualifying plant and machinery, you may be able to claim 100% full expensing or a 50% first year allowance to reduce your corporation tax bill. These generous reliefs give you significant tax savings upfront, but special rules apply when you later sell or...

5 min read