What are Capital Allowances?
Updated: Mar 24, 2022
Capital Allowances allow you to claim tax relief on assets you buy for your business.
The value of these items can be offset against your company’s profits over time.
The day-to-day expenses you incur running your business are typically offset against your company’s profits and can be claimed without delay as expenses.
However, not all costs are ‘allowable’ as day-to-day expenses for tax purposes – typically larger ‘capital’ items, which are accounted for in a different way.