Tax allowances for business investment

Making the most of your investment

The currently high level of annual investment allowance for plant and machinery means that for many businesses there is no immediate difference between capital and revenue expenditure. However, where such relief is not available, it is important that you benefit from any other available tax relief for capital expenditure.

Many types of capital expenditure qualify for capital allowances, but make sure you keep up with any changes to the rules because they are often updated. 

The annual write-off for the construction costs of commercial property has recently been increased from 2% to 3%, and from April 2021 allowances for motor cars are going to be curtailed, especially the 100% first-year allowance.

Robert Moore

Managing Director