Accountancy and Consultancy 			Services

Capital Allowances - Basics

Rate this item
(0 votes)

Capital allowances: Introduction

If you buy an asset - eg a car, tools, machinery or other equipment - for use in your business, you cannot deduct your expenditure on that asset from your trading profits. Instead, you may be able to claim a capital allowance for that expenditure.

Capital allowances are also available for certain building-related capital expenditure, for qualifying capital expenditure on qualifying research and development, for donations of used business assets to charity, and certain other capital expenditure.

The aim is to give tax relief for the reduction in value of qualifying assets that you buy and own for business use by letting you write off their cost against the taxable income of your business.

Capital Allowances are available to sole traders, self-employed persons or partnerships, as well as companies and organisations liable for Corporation Tax.

This guide provides an overview of the types of purchases or investments that may qualify for a capital allowance and provides links to more detailed information. It also explains how and when to make a claim.


News in Brief

Warning: Creating default object from empty value in /var/www/vhosts/ on line 37

BBC News - Business