2026/27
Capital allowances
- Annual Investment Allowance (companies)£1,000,000
- Annual Investment Allowance (sole traders/partnerships)£1,000,000
- Main rate WDA£14 %
- Special rate WDA£6 %
- Structures & Buildings Allowance£3 % straight-line
- FYA on new zero-emission cars (to April 2027)£100 %
- Corp tax full expensing on new plant & machinery£100 %
Capital allowances explained
Capital allowances let a business deduct the cost of qualifying equipment, vehicles and certain building features from its taxable profits. The Annual Investment Allowance gives immediate relief up to a limit, and full expensing and first-year allowances can give 100% relief on qualifying assets. The tables above show the current limits.
Claiming everything you are entitled to — especially on fit-outs and machinery — can materially cut your tax bill. Our compliance and consultancy services make sure nothing is missed.
Frequently asked
What qualifies for capital allowances?+
Plant and machinery, business vehicles, tools and certain integral building features. What qualifies (and the rate) depends on the asset — we review this for you.
What is the Annual Investment Allowance?+
It gives 100% relief on qualifying plant and machinery up to an annual limit, so you deduct the full cost in the year of purchase.