As a business you can claim tax allowances, called capital allowances, on certain purchases or investments. This means you can deduct a proportion of these costs from your taxable profits and reduce your tax bill.

Capital allowances are available on plant and machinery, buildings – including converting space above commercial premises to flats for renting – and research and development. The amount of the allowance depends on what you’re claiming for. In some cases, the rates are different in the year you make the purchase from, to those in subsequent years.

Familiar capital allowance claims are as follows:

•    Capital allowance on plant and machinery
•    Capital allowance on buildings
•    Research and development capital allowances

You do not need to worry about that. Our friendly team will advise you and prepare your self assessment return and compute your tax liability on due date.