Capital allowances

Apart for plant and machinery, we help claim capital allowances to renovate business premises in destitute areas of the UK, research and development, extracting minerals, intellectual property know-how, patents, and dredging.

If a new purchased asset qualifies for first year allowances the entire cost can be deducted from profit before tax (PBT). In addition to annual investment allowance, the first year capital allowance can be claimed.

Also, businesses can claim a type of first year allowance known as the ‘enhanced capital allowance’ for the following equipments:

• Some cars with low CO2 emissions; zero-emission goods vehicles
• Plant and machinery for gas refueling station, for example pumps, storage tanks
• Energy saving equipment, for example, certain motors
• Hydrogen, biogas, and gas refueling equipment
• Water saving equipments, for example, meters, taps, and efficient toilets

We help work out the capital allowance; sole traders can claim on their self assessment, partners can claim on their partnership tax return, a limited company through a company tax return. For employees, the claim amount can be deducted from the profits.

To claim the full value under first year allowance or annual investment allowance, we can also help claim allowances in the accounting period when the asset was bought. In case the entire value is not to be claimed, part can be claimed using writing down allowance and this can be done until the asset is owned.