Capital Allowances

Capital allowances give businesses the opportunity to deduct tax from the overall corporate or income tax applied to their profits.

Capital Allowances – Do You Qualify?

The tax relief applies to certain property-related plant and machinery, if purchased for a company’s professional use. It is usually the case that the full cost of these items can be deducted from business profits before they are taxed.

Included among the areas of expenditure that qualify for capital allowances are:

  • Business vehicles (such as vans and cars)
  • Electrical systems (including lighting)
  • Hot and cold water systems (but not toilet and kitchen facilities)
  • Air-conditioning, air cooling or purification
  • Lifts, escalators, and moving walkways
  • Bathroom suites
  • Fire alarms
  • CCTV
  • Burglar alarms

Tax Relief

There are many considerations when claiming capital allowances and the rules are complex. The amount of tax that can be deducted varies depending on a number of factors, and businesses can maximise the amount of tax relief they benefit from by seeking professional advice.

At Bishops, our specialists have the knowledge and expertise to help companies by ensuring they receive their full capital allowances entitlement.

You can rest assured that we have successfully made claims for numerous clients, identifying all eligible expenditure.

For more information about how we can help your business with capital allowances, please contact us.


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