Yes, the UK government provides specific Capital Allowances, such as the Enhanced Capital Allowances (ECA) scheme. This is for environmentally sustainable and energy-efficient investments. Qualifying upgrades, like energy-efficient lighting, heating systems, and water conservation equipment, can be claimed to receive tax relief, encouraging businesses to adopt eco-friendly improvements. These allowances support sustainability efforts and offer financial incentives by reducing taxable profits.
Capital Allowances are tax deductions that businesses can claim on certain types of expenditure for commercial properties. These include machinery, and equipment that are used for business purposes. These allowances enable businesses to offset the cost of these assets against their taxable profits, reducing their overall tax liability. Understanding and maximising capital allowances can significantly benefit businesses by improving cash flow and reducing their tax burden.
However, not everyone is familiar with the rules, regulations and eligibility surrounding Capital Allowances. Explore our FAQs to learn more
