Businesses are allowed to claim tax relief on purchases of certain assets such as a vehicle or piece of equipment.

Capital Allowances allow you to deduct a proportion of the cost of the asset from your profits before calculating your tax liabilities, potentially yielding significant tax savings.

The nature of the expenditure determines the type of capital allowance that can be claimed and the rate of relief that is available.

The most attractive capital allowances include:

The Annual Investment Allowance (AIA) – 100%
  • Deduct 100% of the cost of the asset in the year of purchase
  • Available to all businesses on investments in plant and machinery (cars do not qualify)
  • The maximum deduction from profits is currently limited to £500,000
First Year Allowance (FYA) – 100%
  • Deduct 100% of the cost of the asset in the year of purchase
  • Available on certain energy and water efficient plant and machinery
  • Can be claimed in addition to AIA

Please contact us to discuss how our expert team of tax advisors can work with you to maximise the impact of capital allowances deductions in your business.

Stuart Barbour CA CTA

Director

More about Stuart

Case Study

Vattenfall

Vattenfall is one of Europe’s largest producers and retailers of electricity and low carbon heat. Warrener Stewart has provided the group with essential accountancy services and technical guidance since it first set up in the UK more than 15 years ago.

Client's view

“ I am extremely happy with the services of Warrener Stewart. We have a team of people supporting us and everything runs smoothly and swiftly. ”

Read the case study

Find out more

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London: 020 7731 6163
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“ We were so impressed at their quick response times and ability to resolve even the most complicated financial problem. ”
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