Capital allowances

You may be able to reduce your business’ tax bill to take account of money it spends on assets by claiming capital allowances.

You can claim capital allowances if you’re running a limited company or if you’re self-employed.

Get basic information on capital allowances from HM Revenue & Customs, as well as detailed guides on claiming capital allowances for:

Spending money on things like this is called ‘capital expenditure’.

You must not claim capital expenditure as business expenses.

First year allowances

First year allowances let you claim 100% of the cost of specific assets in the tax year you buy them. This includes:

How to claim

Sole traders and business partnerships

You can’t claim capital allowances on a vehicle you’re claiming simplified expenses for.

If you’re a sole trader, you must claim capital allowances in your Self Assessment tax return.

If you’re a partnership, you must claim in the partnership’s Self Assessment tax return, not any of the individual partners’ returns.

Limited companies

If you’re a limited company, you must make a claim in your Company Tax Return.

You must include a separate capital allowances calculation as part of your Company Tax Return.


Author: MixoBiz

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