Claim capital allowances
How to claim
Claim capital allowances on your:
- Self Assessment tax return if you’re a sole trader
- partnership tax return if you’re a partnership
- Company Tax Return if you’re a limited company - you must include a separate capital allowances calculation
Employees must claim in a different way.
If you used writing down allowances, you’ll need to work out how much you can claim based on the pool your item is in.
The amount you can claim is deducted from your profits.
When you can claim
You must claim in the accounting period you bought the item if you want to claim:
- annual investment allowance
- 100% first-year allowances
- super-deduction or special rate first-year allowance
- full expensing and 50% first-year allowance
If you do not want to claim the full value you can claim part of it using writing down allowances. You can do this at any time as long as you still own the item.
When you bought it
The date you bought it is:
- when you signed the contract, if payment is due within less than 4 months
- when payment’s due, if it’s due more than 4 months later
If you buy something under a hire purchase contract you can claim for the payments you have not made yet when you start using the item. You cannot claim on the interest payments.