Capital allowances

Capital allowances are an approved form of tax depreciation for expenditure on assets of a capital nature.  This a complex area and the rates and rules are constantly changing.

Capital allowances can be claimed by:

  • Partnerships
  • Companies
  • Self employed individuals
  • Owners of furnished holiday lettings

Expenditure eligible for capital allowances must be allocated to set categories known as pools, each pool allows a different proportion of the expenditure to be deducted against that year’s profits with the balance carried forward.  Ensuring the expenditure is correctly allocated can therefore be crucial to the cashflow of the business as the allowable amount can vary from 100% to 10%.

Experience in this complex area is particularly relevant for new  build and building refurbishment works as large amounts of expenditure are typically incurred and there are usually many items integral to the building that can also be identified and claimed by an experienced advisor.

At RPG Crouch Chapman we can review your expenditure to determine eligibility, guide you through the process and put together the maximum claim for your business.

Please review our guide to Capital allowances and please contact our tax team to discuss this in more detail.

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