Yes, as a sole trader, you are generally eligible to claim Capital Allowances on qualifying assets used for your business. The allowances are deducted from your profits before calculating your tax liability, providing tax relief for the depreciation of these assets.
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
