The Annual Investment Allowance (AIA) is a generous tax relief that allows for the total amount of qualifying expenditure on plant and machinery to be deducted from pre-tax profits. The maximum amount
Category: Capital allowances
Find our how you and your business can save money, legally! Follow UK-Based CIGMA Accounting to stay in the loop with capital allowances.
New First Year Allowance from 1 January 2026
The new 40% First Year Allowance (FYA) for qualifying main-rate plant and machinery expenditure first announced at Autumn Budget 2025 has now come into force. Effective from 1 January 2026, the new
Extension of FYA for zero-emission cars and charge points
An extension of First-Year Allowances (FYA) for zero-emission cars and charge points was announced as part of the recent Budget measures. This means that the 100% FYA for qualifying expenditure on
Could you claim the Small Pool Allowance?
Writing-down allowances (WDAs) are a type of capital allowance that let you deduct a percentage of an asset’s value from your taxable profits each year. In some cases, you may be able to claim more
Types of Tax Allowances for Capital Expenditure (2025 Guide)
Capital Allowances UK 2025 - A Complete Guide for Businesses Capital allowances are one of the most valuable forms of business tax relief in the UK, enabling companies and entrepreneurs to reduce
Tax write-offs for an electric car with zero emissions
Buying a zero-emission electric car through your limited company could mean 100% tax relief in year one. Understand the capital allowances and boost your business-s tax efficiency with smart vehicle
How to Handle VAT on Rental Properties: Essential Strategies for Landlords
How to Handle VAT on Rental Properties: Essential Strategies for Landlords Navigating VAT on rental properties can seem daunting, but it's crucial for landlords to understand how it impacts their finances. Most rental income from residential properties is VAT-exempt, meaning that you typically do not need to charge VAT on the rent you collect. However, … Continue reading How to Handle VAT on Rental Properties: Essential Strategies for Landlords
How to Handle Capital Allowances for Furnished Rental Properties: A Comprehensive Guide
How to Handle Capital Allowances for Furnished Rental Properties: A Comprehensive Guide Navigating the world of capital allowances for furnished rental properties can seem complex, but it's important for maximising your tax relief. Capital allowances allow you to claim tax relief on certain expenditures related to your rental property, which can significantly reduce your taxable … Continue reading How to Handle Capital Allowances for Furnished Rental Properties: A Comprehensive Guide
Tax liability if you sell a business asset
When selling assets on which capital allowances were claimed, you may need to adjust your taxable profits with a balancing charge or allowance. Understanding these rules ensures you don-t face
Types of tax allowances for capital expenditure
Capital allowances enable businesses to claim tax relief on certain capital expenditures. Different rules apply to various types of capital expenditure, and the amount you can claim depends on the
Invest and save tax
The Annual Investment Allowance (AIA) is a generous tax relief that allows for the total amount of qualifying expenditure on plant and machinery to be deducted from your profits before tax.
The AIA
Full expensing
The full expensing 100% first-year capital allowance for qualifying plant and machinery assets came into effect on 1 April 2023. To qualify for full expensing, expenditure must be incurred on the
Repairs or replacement of business assets
The term ‘capital allowances’ is used to describe the allowances available to businesses to secure tax relief for certain capital expenditure. The rules that govern the purchase of capital equipment
Current capital allowances for car purchases
If you are thinking about purchasing a company car through a limited company, there are many issues that need to be considered. In this short article we will point out some of the main issues, but it
Unpacking 2023 Spring Finance tax changes
The 2023 Spring Finance Bill consolidates changes proposed in the 2023 Spring Budget as well as additional changes to tax duty rates and tax relief allowances.You can click here for our breakdown of the relevant changes to income tax, corporation tax, and tax-free allowances.In this post, we will outline the changes to capital allowances and … Continue reading Unpacking 2023 Spring Finance tax changes
Full expensing started 1 April 2023
The new 100% first-year capital allowance for qualifying plant and machinery assets known as full expensing came into effect on 1 April 2023. This measure expected to help boost business investment
Calculating taxable income for companies
As a UK company, you are required to pay corporation tax on your taxable profits. These are your total profits, minus business expenses that can be claimed as tax relief.However, it is important to note that not all expenses incurred by your business can be taken off of your taxable profit. In this blog post, … Continue reading Calculating taxable income for companies
Spring Budget 2023 – Capital allowances
Designed in part to help offset the increased Corporation Tax main rate, the Chancellor announced the introduction of a new ground-breaking 100% first-year capital allowance for qualifying plant and
What expenses can I claim back when self-employed?
When you are self-employed, as with other types of business, you will have various costs to keep your business running. Many of these expenses qualify for tax relief, which means you can deduct the value of these expenses from your profits before working out how much tax you owe. what qualifies for tax relief? You … Continue reading What expenses can I claim back when self-employed?
3 Tips for Companies with Year-End on 31 December
With the festive season approaching, many companies are closing for the holidays. But for some companies 31 December marks their annual year-end date. So in preparation, we want to give companies with a year-end date a few tips! Tip 1 : Super-deduction Capital Allowance The super-deduction and special rate first year allowance (SR allowance) temporarily … Continue reading 3 Tips for Companies with Year-End on 31 December
Super-deductions finish March 2023
Time is running out to claim the super-deduction offering 130% first-year tax relief. The deduction is available to companies until March 2023. The super-deduction was designed to help incorporated
What qualifies for First Year Allowances
Businesses can claim a 100% first-year allowance (FYA) on the purchase of certain qualifying Plant and Machinery (P&M). The cash-flow benefit of accelerated tax relief is designed to encourage
Capital Allowance Pools
A Writing Down Allowance (WDA) is available for plant and machinery expenditure that exceeds the Annual investment allowance (AIA) and / or does not qualify for a First-Year Allowance as well as for