1047 - Capital allowances for equipment vehicles and some types of buildings

You can't deduct the cost of buying, altering, building, installing or improving fixed assets such as property or machinery. Also you can't claim depreciation or losses when these assets are disposed of.

Instead, you can claim capital allowances, which reduce your profits (or increase a loss).

You can claim capital allowances for the cost of plant and machinery such as vehicles, tools, ladders, computers and business furniture that you own.

Each year you can claim 25% of the cost or value of such equipment or vehicles etc. There is a 'first year' allowance of 40% or 50% for some new items and you may be entitled to 100% allowance for environmentally friendly expenditure or environmentally beneficial technologies.