Who Can Claim Capital Allowances

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Who Can Claim Capital Allowances

If you’re self employed and running a business you may need to buy certain assets like tools & equipment, computers depending on the nature of your business to carry out the work. You can’t claim assets as trading expenses instead you can claim ‘Capital Allowances’.

Capital Allowances are available from the date your business starts trading. You can also claim capital allowances for items purchased before trading, necessary to run the business.

You can claim if you buy the assets to use in the business & you are:

  • Self Employed
  • Partnership
  • Limited Company
  • Landlord (but not for residential properties that are not holidays let)
  • An employee who buys equipment to do the job


You add together the cost of assets bought for business use during the year & allowance is worked out on the total amount in the pool. You can not claim on the cost of individual item.

If the item is gift or bought for another purpose, you can not add the cost, instead the market value the day you your business started to use it.


There are 3 categories to put the cost of bought or gifted items:

Main Pool: Majority of equipment’s fall in the main pool category except CO2 emissions.

Special Rate Pool: Items’ that can’t go into the main pool like certain building fixtures or electrical systems, heating or ventilation

Long life assets of expected business life of 25 years or cars with high CO2 emissions.

Single asset pools: Equipment or cars use for both business & private purpose don’t go into your main or special rate pool.

If you sell an asset you claimed capital allowance & the value of asset is more than the pool balance, the difference you will add to taxable profit.

You can find another blog for life of assets, disposals & balancing charge. If you need further information how to claim capital allowances for your business, contact us. rubina@pplaccountants.co.uk or visit website  https://pplaccountants.co.uk

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