Capital Allowances
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
CAPITAL ALLOWANCES
What are capital allowances?
Capital allowances are tax allowances that enable you to deduct a proportion of these costs from your taxable profits, thereby reducing your tax bill. You can claim capital allowance on certain types of purchases and investments. Examples of these are:
- vans or cars;
- equipment;
- furniture;
- computers.
The amount of allowance depends on what you are claiming for and when you claim it. The allowance will be based on a percentage of the purchase cost, which excludes VAT if you are VAT registered. Use your income or corporation tax return to claim your allowances. Your accountant will advise you.
