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Capital allowances

Access expert commentary and practical guidance from ICAEW on capital allowances within the UK tax regime

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Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax.

Exclusive TAXguide 13/21 Capital allowances: super deduction and 50% special rate allowance
  • Technical release
  • 27 Jul 2021
The super deduction, special rate allowance and extension of the uplifted annual investment allowance, were discussed by Steve Watts and Richard Jones in a Tax Faculty webinar on 14 June 2021. This TAXguide provides answers to questions raised in that webinar.
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Features and articles

Government publishes its plans for corporation tax
  • Article
  • 30 Oct 2024
The government has set out its intentions for corporation tax for the next five years, delivering on its commitment to publish a business tax roadmap at the Autumn Budget.
ICAEW helps improve HMRC’s capital allowances guidance
  • Article
  • 17 Oct 2024
Following a meeting at which HMRC set out seven areas of the capital allowances regime where its guidance could be improved, ICAEW has provided written comments on those areas and on the guidance generally.
Exclusive Why special tax sites really are special
  • Article
  • 30 May 2024
Enhanced capital allowances may be claimed where qualifying expenditure is incurred in freeports and investment zones. Bryan Crawford looks at the conditions for making a claim and explains how businesses can benefit from the reliefs.
A lowdown on full expensing for SMEs
  • Article
  • 23 May 2024
Announced as a permanent capital allowance in the 2023 Autumn Statement, full expensing is a boon for companies investing in capital assets. Here, we examine the details of the new allowance and how to compile a claim.
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Webinars and recordings

Expanding the cash basis
  • Webinar
  • 18 Apr 2024
  • PDF (992kb)
Presentation slides to accompany the Tax Faculty webinar 'Expanding the cash basis', broadcast 18 April 2024.
Capital allowances: the curious case of camping pods
  • Podcast
  • 01 Feb 2024
The Tax Track is the new podcast series from ICAEW where we explore the latest from the tax world, and what it means for tax professionals, accountants, taxpayers and businesses. In this episode, we take a look at the wider implications of an unusual capital allowance case regarding camping pods that went to tribunal.
Exclusive Capital Allowances
  • Webinar
  • 06 Jul 2023
This webinar from the Tax Faculty will explore current issues relating to capital allowances.
Capital Allowances
  • Webinar
  • 14 Jun 2021
Brought to you by the Tax Faculty, this webinar covers the capital allowances landscape following the provisions in the 2021 Finance Act.
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Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Property rental businesses
  • eBook chapter
  • 2024
  • Annette Morley, Nicola Moore
  • A to Z of Business Tax Deductions
A full chapter covering the tax principles and framework for deductions by unincorporated property businesses.
Exclusive Capital allowances
  • eBook chapter
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
A chapter on capital allowances, containing worked examples throughout.
Exclusive Capital allowances
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on capital allowances in relation to partnership taxation.
Exclusive Trading company and investment company computations under CTSA
  • eBook chapter
  • 2024
  • Peter Rayney
  • Tax Planning for Family and Owner-managed Companies
Chapter containing advice on computations and the corporation tax self-assessment (CTSA) return, written for anyone who advises or runs a family or owner-managed company.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

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eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Other allowances
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
An outline of allowances for small businesses provided under the Capital Allowances Act 2001. This chapter covers business premises renovation allowance, qualifying expenditure, qualifying building, and other relevant matters.
Exclusive Capital allowances on plant and machinery
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
This chapter outlines the essentials of the Capital Allowances Act 2001. It includes a definition of plant and machinery, a list of qualifying activities and a definition of expenditure. There is also a section on the various kinds of allowance, including enhanced capital allowances and annual investment allowance.
Exclusive Chattels and wasting assets
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
Explains the nature of chattels and wasting assets as defined by the Taxation of Chargeable Gains Act 1992. Shows where capital allowances are available using a reference table and a worked example.
Exclusive Trading income
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
Explains how corporation tax applies to trading income and the ways in which it differs from income taxation. Covers the annual investment allowance and capital allowances for plant and machinery.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on capital allowances. A selection of books on this topic is set out below.
A-Z of plant & machinery, 2024-25
  • Library book
  • 2024
  • R. Chidell, J. Iles
  • Claritax Books
This book assists with determining whether particular assets are likely to qualify as plant or machinery for capital allowance purposes, with reference to case law and HMRC guidance.
Capital allowances, 2024-25
  • Library book
  • 2024
  • R. Chidell, J. Iles
  • Claritax Books
An in-depth guide to the UK system of capital allowances, aimed at accountants and tax specialists. The book provides tips on how to avoid costly errors and maximise tax relief. Topics covered include plant and machinery allowances, allowances for capital expenditure on R&D, and the structures and buildings allowance.
Tolley's capital allowances, 2023-24
  • Library book
  • 2023
  • K. Walton
  • LexisNexis
An annual book covering all aspects of law and practice around capital allowances. It aims to assist practitioners and taxpayers in establishing what types of allowances are available and how they can be claimed. Worked examples are included to clarify complex points.
101 property tax tips, 2023/2024
  • Library book
  • 2023
  • J. Adams
  • Tax Insider
A collection of tax planning tips aimed at those involved in a property business. The author highlights various ways to save property tax, covering issues including ownership, letting accounts, capital allowances, losses, foreign matters, selling property, main residence relief, gifting property, inheritance tax planning, and the use of trusts.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 072/24 Update of HMRC capital allowances guidance
  • Representation
  • 15 Oct 2024
  • PDF (309kb)
ICAEW written comments relating to HMRC’s update of its capital allowances guidance.
ICAEW REP 065/24 ICAEW Autumn Budget submission 2024
  • Representation
  • 18 Sep 2024
  • PDF (313kb)
Ahead of the Budget on 30 October, ICAEW has published its submission to the Chancellor. ICAEW urges the government to put incentivising growth at the heart of the Budget, with recommendations including: long-term fiscal planning, a fundamental review of the tax system and investment in skills and green technologies.
ICAEW REP 107/23 Autumn Statement 2023
  • Representation
  • 16 Oct 2023
  • PDF (266kb)
A representation dated 13 October 2023 to a consultation published by HM Treasury ahead of the Autumn Statement taking place on 22 November 2023.
ICAEW REP 087/23 Call for Evidence NIESR Productivity Commission
  • Representation
  • 06 Sep 2023
  • PDF (282kb)
A representation dated 6 September 2023 to a consultation published by the National Institute of Economic and Social Research.

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Claim capital allowances
  • Website
  • GOV.UK
Capital allowances are a type of tax relief for businesses. They let you deduct some or all of the value of an item from your profits before you pay tax.
Check if you can claim enhanced structures and buildings allowance relief in Freeport tax sites
  • Website
  • HMRC
Information on requirements for claiming enhanced structures and buildings allowance relief, how to apportion the relief, and how much businesses can claim. Includes examples with calculations.
Check if you can claim the enhanced capital allowance relief in Freeport tax sites
  • Website
  • HMRC
Information on how to claim relief for qualifying expenditure for plant and machinery, how much businesses can claim, and withdrawal of relief. Includes examples with calculations.
Enhanced Structures and Buildings allowances in Freeports
  • Website
  • HMRC
Measure introduced in Budget 2021 offering an enhanced 10% rate of Structures and Buildings Allowance for constructing or renovating non-residential structures and buildings within Freeport tax sites in Great Britain, once they have been designated.
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