Capital allowances and business assets
The Annual Investment Allowance, full expensing, first year allowances and the fixtures rules decide how quickly an asset turns into tax relief. These guides cover which allowance applies to what, the timing traps around your year-end, and when a purchase is an expense rather than an asset at all.
10 guides in this topic.
Capital Allowances on Plant & Machinery: AIA vs First Year Allowances
Claiming capital allowances correctly can dramatically reduce your limited company's tax bill. This guide breaks down the Annual Investment Allowance and First Year Allowances, explaining when to use each and how to maximise your relief on plant and machinery purchases.
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Capital Allowances on Plant & Machinery: More Than Just an Expense
When you buy equipment for your business, HMRC doesn't always let you deduct the full cost as a simple expense. Understanding capital allowances — particularly the Annual Investment Allowance — can dramatically reduce your tax bill. Here's what every sole trader and limited company director needs to know.
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Capital Allowances for Plant & Machinery: Maximise Your Tax Relief
Capital allowances on plant and machinery can significantly reduce your company's tax bill, but getting the claim wrong can trigger costly HMRC challenges. This guide explains how to make the most of the Annual Investment Allowance and First Year Allowances, and how to avoid the pitfalls that catch out limited company directors every year.
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Fixtures & Fittings: Maximise Tax Relief With Correct Asset Allocation
Misclassifying fixtures and fittings between plant and machinery and chattels is one of the most costly mistakes a limited company director can make. Get it wrong and you could miss out on thousands of pounds in capital allowances. This guide explains exactly how to allocate assets correctly under current HMRC rules.
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Capital Allowances on Plant & Machinery: How to Claim the AIA
Capital allowances let you deduct the cost of business equipment from your taxable profits — but knowing which assets qualify and how to claim correctly is essential. This guide covers plant and machinery rules, the Annual Investment Allowance, and common mistakes to avoid. Relevant for both sole traders and limited company directors.
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Capital Allowances on Plant & Machinery: Maximise Your First Year Relief
If your business buys equipment, machinery, or tools, you could claim significant tax relief through capital allowances. This guide explains exactly what qualifies as plant and machinery, how the Annual Investment Allowance works, and how to make sure you're claiming every penny you're entitled to. Relevant for both sole traders and limited companies.
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Claim the Annual Investment Allowance Before Your Year-End
The Annual Investment Allowance lets UK businesses deduct the full cost of plant and machinery against taxable profits in the year of purchase. With the AIA set at £1 million, timing your spending correctly can make a significant difference to your tax bill. Here is what you need to know before your accounting year closes.
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Capital Allowances on Plant & Machinery: Full Expensing vs FYAs
If your limited company is investing in plant and machinery, choosing the right capital allowance can make a significant difference to your tax bill. Full Expensing and First Year Allowances are both powerful reliefs, but they work differently and suit different situations. Here's how to make the most of both in 2025.
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Software Subscriptions for Sole Traders: Expense or Capital Asset?
Knowing whether your software costs count as a revenue expense or a capital asset matters more than ever under MTD ITSA. Get the classification wrong and you could be claiming relief in the wrong place — or missing out entirely. Here is what sole traders need to know.
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Home Office Equipment: Capitalise or Expense? A UK Tax Guide
Buying a desk, laptop, or monitor for your home office raises an important tax question: do you capitalise it as an asset or expense it immediately? The answer affects how much tax relief you get and when you get it. Here is exactly how UK rules work in 2026.
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