Updated: Mar 24
Capital allowances can be claimed on most assets that a business has purchased and this expenditure can be claimed against a company's taxable profits.
Assets purchased by a company can come in many forms such as fixtures and fittings, land, technology, etc. as each asset plays a different role in the Tax rules that apply can vary.
Annual Investment Allowance
As the limit for annual investment allowance (AIA) has been increased from £200,000 to £1,000,000 then the purchasing of expensive assets could be financially beneficial to the company if purchased at the correct time.
If for example, the company were to buy machinery worth £1,000,000 at the end of the tax year then a further £1,000,000 a the start of the next tax year, the company would benefit from £2,000,000 worth of AIA. If both assets were bought in the same tax year then they would not receive as much AIA.
Capital Allowances are often overlooked or avoided altogether. D:CA are dedicated capital allowance experts who are committed to getting every commercial property owner the tax deductions they deserve.