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.
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
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 tech | No limit |
| Writing Down Allowance (Main Pool) | 18% | General plant, machinery, cars ≤50g/km CO2 | No limit (reducing balance) |
| Writing Down Allowance (Special Pool) | 6% | Integral features, long-life assets, cars >50g/km CO2 | No limit (reducing balance) |
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%).