Donald Reid Group

Capital allowances

The cost of purchasing capital equipment in a business is not a revenue tax- deductible expense. However tax relief is available on certain capital expenditure in the form of capital allowances. The allowances available will depend on what you are purchasing.

In this fact sheet on capital allowances, you find an overview of the types of expenditure, which qualify for capital allowances and the amounts available.

  • Plant and machinery
  • Pooling of expenditure and allowances
  • Structures and buildings allowance
  • Special rules for cars
  • Environmentally friendly equipment
  • Short life assets
  • Long life assets
  • Other assets
  • Claims

The rules surrounding capital allowances can be complex, so please do get in touch with the DRG Chartered Accountants’ tax team to discuss your personal circumstances.

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