Guide To Expenses And Capital Allowances

Capital allowances

Capital allowances can be claimed on valuable assets such as your work van, tools or other one-off equipment.

You can claim an allowance of up to 100% in the year of purchase on certain items such as tools, although cars and vans are restricted to 18% per annum in most cases. Also the assets you had owned before you started the business may also be claimed if you use them now for your business.

As is the case with expenses, anything that is solely for business use is fully claimable, while other assets such as cars are claimable in proportion of business use.

You can find out more detailed information on capital allowances here (opens in new window).

If you use our Tax Return spreadsheet, capital allowances figures go to fields B32,B33 and B34.

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