Expenses

High Value, long-life span items

Many common business assets such as office equipment, furniture, machines, vehicles or large tools may be considered for capital allowance purposes.

This may be a far more tax-efficient method of claiming tax relief on such purchases and may even allow you to write off the total amount as a capital allowance in the first year.

Some common examples of capital allowance items include:

• Vans
• Tools
• Furniture
• Machinery
• Equipment
• Computers

The criteria on what does and doesn’t count as a capital allowance are complicated, and we always recommend seeking professional advice before engaging in any such transactions. 

In most cases, capital allowances may be considered for purchases that cost over £2000 and have an expected business lifespan of more than two years.