Types of Tax Relief

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 capital tax relief at 14% per annum read more

    • Integral features – tax relief for higher value building services assets at a 6% rate read more

    • 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 - 100% Main Rate Expenditure

    • First Year Allowances - 50% Special Rate Expenditure

  • Annual Investment Allowances

    • A valuable incentive of £1m per annum to encourage capital investment read more

  • Structure and Buildings Allowances

  • Freeports

  • Research & Development Allowances

    • Relief for investment into qualifying research and development technologies

Land Remediation Tax Relief

This is a “green” environmental tax relief aimed at encouraging investment in brown-field or derelict sites which contain contaminants or obstructions. It has been available for some years, but remains an under-used tool for developing brown-field land.

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Revenue Tax Relief

A long-standing instrument, this provides relief for capitalised expenditure incurred on repairs to assets or the maintenance of assets.

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