Enter the brought-forward pool balances from your previous accounting period.
Reg. 07380272 · England & Wales · Est. 2010
Are you claiming all your capital allowances?
From AIA to writing-down allowances, ensure you are maximising your tax deductions on business assets.
Total Asset Cost
£8,000
Year 1 Allowances
£8,000
Tax Saving
£2,000.00
AIA Remaining
£992,000
Allowance Breakdown
Everything you need to know about capital allowances in the UK
What are capital allowances?
Capital allowances let you deduct the cost of business assets from your taxable profits. Instead of claiming the full cost as an expense in the year of purchase, capital allowances spread the tax relief over the useful life of the asset — or allow you to claim 100% in year one through the AIA or full expensing.
Annual Investment Allowance (AIA)
The AIA gives 100% first-year relief on the first £1,000,000 of qualifying plant and machinery expenditure per year. This is available to all businesses. Most businesses will find their entire annual spend is covered by the AIA.
Full Expensing & Writing Down Allowances
Limited companies can claim 100% full expensing on qualifying main pool plant and machinery. Any expenditure not covered by AIA or full expensing goes into a pool — you claim WDA each year: 14% for the main pool and 6% for the special rate pool.
What assets qualify?
Capital allowances apply to plant and machinery used for your business: computers, office equipment, vehicles, tools, furniture, and certain fixtures. They do not apply to land, buildings (with some exceptions), or items bought for resale.
HMRC-Aligned: This calculator uses official 2025/26 capital allowance rates for 2026/27. For complex situations involving connected parties, short accounting periods, or mixed-use assets, consult a qualified accountant.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms