Clear Commercial Consultants
A Capital Allowance is a form of tax relief that enables the cost of capital expenditure to be written off against the taxable profits of a business.
When you spend money buying or improving a property, HMRC allows taxpayers to write off some of that expenditure against their profits or general income for tax purposes.
This applies to ‘Plant & Machinery’ within these properties, as defined within the Capital Allowances Act 2001. They take the place of depreciation charged in the commercial accounts, which is not normally deductable for tax purposes.
