Capital Allowance Resources
HMRC Guidelines & Information
Understanding capital allowances is essential for maximizing tax benefits for your business. We've compiled key resources to help you navigate HMRC rules and regulations.
Capital allowances let you claim tax relief on capital expenditure by allowing you to deduct some or all of the value of the item from your profits before you pay tax.
You can claim capital allowances when you buy assets that you keep to use in your business, such as:
- Plant and machinery
- Equipment
- Business vehicles
- Certain fixtures in buildings
Main Capital Allowance Rates (2025/2026)
- Annual Investment Allowance (AIA): 100% on qualifying plant and machinery up to £1,000,000
- Main Rate Pool: 18% writing down allowance
- Special Rate Pool: 6% writing down allowance
- First Year Allowances (FYA): 100% for certain environmentally friendly equipment
- Structures and Buildings Allowance (SBA): 3% straight-line
Note: Always check the latest HMRC guidance for the most up-to-date rates and thresholds.
Main Rate Pool (18%) - Common Examples
- General plant and machinery
- Factory equipment
- Computer equipment
- Office furniture and equipment
- Motor vehicles (except cars with CO2 emissions exceeding 50g/km)
Special Rate Pool (6%) - Common Examples
- Integral features of buildings (electrical systems, water systems, heating systems)
- Thermal insulation
- Cars with CO2 emissions exceeding 50g/km
- Long-life assets (expected life of 25+ years)
100% First Year Allowances - Special Categories
- Zero emission vehicles
- Energy-saving equipment (consult Energy Technology List)
- Water-efficient equipment (consult Water Technology List)
- New electric vehicle charging points
When preparing your Corporation Tax Return (CT600), you need to report capital allowances in the following boxes:
| Box Number | Description |
|---|---|
| 110 | Total capital allowances claimed |
| 145 | Annual Investment Allowance claimed |
| 155 | Writing down allowances claimed (Main Rate Pool) |
| 160 | Writing down allowances claimed (Special Rate Pool) |
| 165 | First Year Allowances claimed |
| 170 | Balancing charges |
You must always include a capital allowances computation with your tax return, showing how the figures have been calculated.
CT600 Form & GuidanceAdditional Resources
HMRC Capital Allowance Manual
Detailed guidance from HMRC on all aspects of capital allowances.
Access ManualHMRC Capital Allowance Calculator
Official HMRC tool to help calculate your capital allowances.
View CalculatorReady to simplify your capital allowance claims?