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Taxopedia  ›  C  ›  Capital Allowances
C · Glossary

Capital Allowances

Tax deductions for business assets like equipment, machinery and (some) buildings.

Capital allowances let you deduct the cost of qualifying business assets from taxable profits. Main types: Annual Investment Allowance (£1m, 100% first year), First-Year Allowances, Writing Down Allowances (18% main pool / 6% special rate), and Structures & Buildings Allowance (3% straight-line).

Get the asset pool right and you can lawfully shelter significant profit from tax — we model this annually.

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