FOCUS:: Capital Allowances for sole traders

If a business or individual uses a capital asset for use in their business (machinery, taxi motor vehicle, etc) they can possible receive a measure of relief. (Capital allowances)

Capital allowances are given at specific rates as laid down in the Capital Allowances Act 2001. The rates of relief depend on:

1. the type of capital expenditure incurred; and
2. the date  cost are incurred.

Claiming Capital Allowances

Capital allowances are not given automatically – they must be claimed within the trader’s individual self-assessment return (or corporation tax return for a company)