Capital Allowances

The Annual Investment Allowance (AIA) lets you claim 100% tax relief immediately when you buy qualifying plant and machinery for your business. This guide explains how much you can claim and what to do when the AIA limit changes partway through your accounting period.

5 min read

Capital allowances can significantly reduce your tax bill by letting you deduct the cost of business equipment and other qualifying assets from your profits before you pay tax. Instead of claiming these purchases as business expenses, you claim capital allowances on items you keep to use in your...

7 min read

When you sell or dispose of an asset you've previously claimed capital allowances on, there are important tax consequences. You may need to add money back to your profits (a balancing charge) or claim additional relief (a balancing allowance). Understanding how this works ensures you report the...

4 min read

From 1 April 2023, companies subject to Corporation Tax can claim significantly enhanced capital allowances on new plant and machinery. Full expensing allows you to deduct 100% of the cost of qualifying main rate assets from your taxable profits in the year of purchase, whilst special rate assets...

4 min read

The Structures and Buildings Allowance (SBA) lets you claim tax relief on the construction or renovation costs of non-residential buildings and structures. You can claim 3% of qualifying costs each year for up to 33 and one third years. This guide explains what qualifies, how much you can claim,...

6 min read