Capital allowances are a tax deductible form of depreciation for UK income tax and UK corporation tax purposes on the expenditure incurred on certain capital assets used in a trade or property business. Relief is given by treating the capital allowances as an expense to be deducted when arriving at the taxable income. The most common assets that qualify for capital allowances are known as 'plant and machinery'. See CA21000 for detailed commentary on this term.
Capital allowances are available to persons carrying on a 'qualifying trade'
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