Getting to grips with capital allowances

What are capital allowances?

Capital allowances provide ways of obtaining tax relief when a business buys capital equipment, for example plant and machinery. They can also apply when you're making renovations to your business premises for items such as heating, lighting or electrical systems.

Any business can claim

Any business can claim relief on qualifying expenditure, but the rules are complex. Whether expenditure is eligible can depend on various factors, such as what you are buying and when, or how long the asset will last.

Plus there's the new 'super-deduction' for companies

The March Budget also introduced an additional first year allowance - the super-deduction - which gives tax relief at 130% on qualifying plant and machinery. But unlike other capital allowances this is only available to companies, not unincorporated businesses.

Start planning now - the super-deduction is temporary

You should start planning now to take advantage of the super-deduction, as this is only available on qualifying expenditure incurred between 1 April 2021 and 31 March 2023.

We're here to help

Click here to read our handy briefing guide explaining more about capital allowances and how your business could benefit from them.

Please get in touch if you'd like to discuss whether your business is maximising its use of the allowances available, or if you need advice on how to make a claim.