Capital
Allowances
Maximise Business Tax Relief Through Capital Allowances
Capital allowances offer significant opportunities for businesses to reduce their tax bills by claiming relief on qualifying capital expenditure. At My Tax Consultants, we provide clear, tailored support to help clients across the UK access the full value of these allowances. Whether you’re purchasing, building, or upgrading assets, we’ll guide you through the process of applying capital allowances effectively as part of a wider tax planning strategy.
Capital allowances are one of the most underclaimed forms of UK tax relief, largely due to a lack of awareness or uncertainty around eligibility. Many businesses are unaware that substantial reliefs can be claimed on obvious items like machinery or equipment and more complex elements such as embedded fixtures within commercial properties.
We specialise in helping businesses of all sizes—from sole traders to large companies—unlock the full potential of their business tax savings through careful analysis, accurate calculations, and timely submissions.
What Are Capital Allowances?
Capital allowances allow businesses to offset the cost of certain capital assets against their taxable profits, reducing their corporation tax or income tax bills. These allowances support investment in infrastructure, equipment, and growth.
Eligible expenditure often includes:
- Commercial buildings and permanent fixtures
- Plant and machinery used in your trade
- Electrical and mechanical systems
- Heating, lighting, and water systems
- Renovations and refurbishments of business premises
- IT systems, servers, and technical equipment
- Vehicles, tools, and storage solutions
There are different types of allowances available, including:
- Annual Investment Allowance (AIA) – providing 100% tax relief on qualifying expenditure up to a certain threshold.
- Writing Down Allowances (WDA) – allowing you to claim tax relief gradually over time.
- First Year Allowances (FYA) – offering immediate deductions for specific energy-saving or environmentally friendly assets.
- Structures and Buildings Allowance (SBA) – introduced to support capital investment in non-residential structures.
Each type of allowance has its own qualifying criteria and treatment in your accounts. Our UK tax consultants will assess your assets and expenditure to ensure you apply for the correct reliefs in line with HMRC guidelines.
How We Help with Capital Allowances
At My Tax Consultants, we take a comprehensive and compliant approach to capital allowances claims. Our team starts by reviewing your past and current capital expenditure to identify areas where allowances may have been missed or could be claimed more effectively.
We carry out the following steps as part of our service:
- Review and analysis of expenditure across new builds, refurbishments, and asset purchases
- Detailed categorisation of qualifying costs, including hidden or embedded fixtures within buildings
- Preparation of supporting documents and schedules compliant with HMRC requirements
- Submission of accurate claims as part of your tax return
- Review of opportunities to claim retrospectively where claims were not made previously
- Ongoing advice on future tax planning related to capital investment
Clients benefit from increased cash flow, reduced liabilities, and a clear understanding of how to plan future investments with capital allowances in mind. We also work closely with property developers, commercial landlords, and owner-managed businesses who regularly invest in property and infrastructure.
Why Capital Allowances Matter
For many businesses, capital allowances are an essential part of managing tax efficiently. They provide a legitimate way to reduce tax bills while reinvesting in operational improvements.
If you have recently:
- Bought or built a commercial property
- Carried out refurbishments or fit-outs
- Purchased expensive tools, vehicles, or technology
- Incurred costs improving or expanding your premises
…then it’s likely you’re eligible to claim some form of capital allowances tax relief.
The key to a successful claim lies in identifying all qualifying expenditure, even where it’s embedded within larger construction or refurbishment costs. That’s where our experience matters.
Speak to Our Tax Consultants
If you’ve recently invested in property, equipment, or fit-outs—or if you’re unsure whether previous spending qualifies—we’re here to help. Our team offers transparent advice, efficient claim preparation, and full support from start to finish.
Start your claim for capital allowances today and discover how much you could save in tax. Call us or complete the contact form to speak to one of our tax consultants today.
