Capitalallowances

When a business buys equipment, machinery, or certain other qualifying assets, the cost is not simply deducted from profits in the normal way. Instead, capital allowances provide a structured form of tax relief that spreads or accelerates the deduction depending on the type of asset and the rules in force.

Various allowances exist covering different categories of expenditure, and the timing and structure of purchases can make a real difference to how quickly relief is obtained. Good record-keeping and forward planning around capital spending, particularly ahead of a year end, can help a business make the most of what is available.