Capital Allowances

These are effectively depreciation for tax purposes. They allow tax payers to set off the cost of qualifying assets against their business projects to reduce the tax payable.

Available in many forms, Capital Allowances are available to UK tax payers. The main forms are listed below – click on the link for more details.

• Plant & Machinery Allowances

  • Plant & Machinery – the most common form of Main Rate of capital tax relief READ MORE

  • Integral features – a Special Rate of relief introduced from April 2008 READ MORE

  • Enhanced Capital Allowances – relief for investment in energy efficient assets

  • Long Life Assets – for assets with a useful economic life of 25 years or more

  • Short Life Assets – for assets disposed of within 8 years

• First Year Allowances - Full Expensing and traditional First Year Allowances

• Annual Investment Allowance

  • A valuable incentive to encourage capital investment READ MORE

• Structure and Buildings Allowances

• Freeports