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 latest relief provides for an annual 2% write-off for the construction costs of commercial property. The Conservative party manifesto included a pledge to increase the annual write-off to 3%, and it is likely this change will come in from April 2020.

Robert Moore

Managing Director