Expenses
Capital Allowances for Small Businesses UK 2026
11 min read
Thistle Team•Tax & Compliance Experts
Capital Allowances
Claim tax relief on business assets:
- AIA: 100% relief up to £1m/year
- Writing Down Allowance: 18% per year on remaining value
- Full Expensing: 100% relief on qualifying plant/machinery
Frequently Asked Questions
What is Annual Investment Allowance?
AIA lets you deduct 100% of qualifying equipment costs (up to £1m) in the year of purchase.
What qualifies for capital allowances?
Equipment, machinery, vehicles, and computers used in your business.
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