Maximising tax relief matters for businesses and property owners wanting to maximise their financial planning. The Capital Allowance Calculator is a powerful tool that allows you to easily and instantly estimate your qualifying tax relief, so you do not overlook beneficial tax savings.
What is a Capital Allowance?
A capital allowance is a tax relief that allows companies and property owners to offset the cost of qualifying capital expenditure against taxable income. The costs may comprise equipment, machinery, fixtures, and some improvements in property. Capital allowances allow companies to pay reduced tax and enjoy improved cash flow.
How Does the Calculator Work?
The Capital Allowance Calculator simplifies the process of estimating tax relief by calculating the amount you can claim based on your capital expenditures. Here are steps on how to use it:
- Input Your Capital Expenditure – Enter the figure utilised in the amount expended on qualifying assets.
- Select the Asset Type – Choose from categories such as plant and machinery, integral features, or structures and buildings.
- Apply the Relevant Allowance Rate – The calculator applies the appropriate tax relief rate based on current HMRC regulations.
- View Your Tax Relief Projection – Get an instant estimate of how much you can claim as a deductible expense from taxable profits.
Types of Capital Allowances You Can Claim
- Annual Investment Allowance (AIA): Gives 100% tax relief on qualifying plant and machinery to a maximum (£1 million until 2024).
- Writing Down Allowance (WDA): For assets over the AIA limit or not eligible for 100% relief; at 18% (main rate) or 6% (special rate pool).
- Allowance for Structures and Buildings (SBA): Grants 3% tax relief every year on eligible building and renovation costs.
- First-Year Allowance (FYA): Gave 100% relief of tax on environment-friendly or energy-efficient investment.
Benefits of Using the Calculator
- Saves Time – Instantly estimate tax relief without complex manual calculations.
- Ensures Accuracy – Uses up-to-date tax rates and rules.
- Improves Financial Planning – Helps businesses plan cash flow and reduce tax liability.
Seek for advice from Specialists
While the Calculator will provide you with an immediate estimate, a professional tax check will ensure you are being offered the best claims and are HMRC compliant. UK Property Accountants can spot hidden allowances and maximise companies’ and landlords’ tax relief.
Don’t lose money—call UK Property Accountants today for expert guidance from capital allowances and tax maximisation experts.
