Capital Allowances Calculator

calculatorsonline.co.uk

Capital Allowances Calculator

Instantly estimate your Annual Investment Allowance (AIA), Writing Down Allowances (WDA), and potential corporation tax savings. Free, accurate tax relief tool for UK businesses.

💼 Business Tax
⚡ Instant Estimation
🎓 HMRC Compliant
📱 Mobile Friendly

Calculate Your Capital Allowances

Enter your qualifying business expenditure to get an instant evaluation of your available capital allowances and the resulting reduction in your tax liability.

Expenditure Details

Enter your qualifying asset purchases for the tax year

🏭 Input Variables
General plant and machinery eligible for the Annual Investment Allowance (up to £1,000,000).
Main Rate: Cars ≤50g/km CO2. Special Rate: Integral features, cars >50g/km CO2.
Select your applicable corporation tax rate to estimate your cash tax saving.

Tax Relief Evaluation

Calculated allowances and estimated tax savings

Capital Allowance Rates

Standard HMRC capital allowance rates to help you categorise your business asset purchases correctly.

Allowance Type Rate Qualifying Assets Annual Limit
Annual Investment Allowance (AIA)100%Most plant and machinery, commercial vehicles£1,000,000
First Year Allowance (FYA)100%Zero-emission cars, certain energy-saving techNo limit
Writing Down Allowance (Main Pool)18%General plant, machinery, cars ≤50g/km CO2No limit (reducing balance)
Writing Down Allowance (Special Pool)6%Integral features, long-life assets, cars >50g/km CO2No limit (reducing balance)
⚠️ Important Note: This calculator provides a simplified estimate. Complex scenarios involving partial non-business use, short accounting periods, or balancing charges/allowances on asset disposal require professional tax advice.

Capital Allowances FAQ

Everything you need to know about claiming tax relief on business assets in the UK.

Capital allowances are a form of tax relief that allows UK businesses to deduct the cost of certain capital assets (like machinery, equipment, and commercial vehicles) from their taxable profits, thereby reducing their Corporation Tax or Income Tax bill.

The Annual Investment Allowance (AIA) allows businesses to deduct the full value (100%) of qualifying plant and machinery purchased in a tax year from their profits before tax. The AIA limit is currently set at £1,000,000 per year.

The main rate pool (18% Writing Down Allowance) includes most general plant and machinery. The special rate pool (6% Writing Down Allowance) includes integral features of a building (like electrical, cooling, or heating systems) and cars with CO2 emissions over 50g/km.

Yes, but the rate depends on the car’s CO2 emissions. New zero-emission cars qualify for a 100% First Year Allowance (FYA). Cars with emissions of 50g/km or less go to the main rate pool (18%), while cars with emissions over 50g/km go to the special rate pool (6%).

Similar Posts

  • Time Duration Calculator

    Time Duration Calculator 2026 | Hours, Minutes & Seconds Estimator calculatorsonline.co.uk Time Duration Calculator Calculate the exact hours, minutes, and seconds between two times. Perfect for work shifts, events, and time tracking. ⏱️ Hours & Minutes 🕒 Time Difference 📅 Shift Length 🔄 Decimal Conversion Time Duration Estimator Calculate the elapsed time between two points…

  • Nanometers to Millimeters Converter

    Nm to Mm Converter | Nanometers to Millimeters Calculator 2026 calculatorsonline.co.uk Nanometers to Millimeters Converter Instantly convert nanometers to millimeters, micrometers, and meters. Essential for nanotechnology, physics, engineering, and precise scientific measurements. 🔬 Nanotechnology ⚛️ Physics ⚙️ Engineering 📏 Metric Scale Nano-scale Measurements Enter your length in nanometers to convert to macro-scale units 📏 Length…

  • Boiler vs Heat Pump Cost Calculator

    Boiler vs Heat Pump Cost Comparison Calculator | Estimate Running Costs calculatorsonline.co.uk Boiler vs Heat Pump Cost Calculator Instantly compare the annual running costs of a gas boiler versus an air source heat pump. Estimate your potential savings and installation payback period. 💷 Running Cost Breakdown ⚖️ Side-by-Side Comparison 📉 Payback Period Estimator 🔒 100%…

  • Late Payment Interest Calculator 2026

    Late Payment Interest Calculator 2026 | Statutory Debt Recovery calculatorsonline.co.uk Late Payment Interest Calculator 2026 Instantly calculate statutory interest, daily interest, and fixed compensation for overdue invoices. Essential for B2B debt recovery and enforcing your late payment rights. ⚖️ Statutory Rights 📅 Daily Interest 🏢 B2B Recovery 📏 Accurate Invoice & Overdue Details Enter the…

  • New Boiler Cost Guide

    New Boiler Cost Guide UK | Estimate Your Installation Cost calculatorsonline.co.uk New Boiler Cost Guide Understand what really drives the cost of a new boiler, and get a personalised estimate by entering your own quote details, boiler type, and installation complexity. 🔥 Cost Estimator 🛠️ Installation Complexity ✅ Gas Safe Guidance 🇬🇧 UK Homeowner Guide…