Capital allowances allow businesses to deduct the cost of qualifying capital expenditure from taxable profits. The Annual Investment Allowance provides 100% first-year relief on qualifying plant and machinery expenditure up to a set annual limit. Full expensing provides 100% first-year relief on qualifying new plant and machinery for companies with no monetary cap. Writing-down allowances apply to expenditure that does not qualify for these reliefs. For current AIA limits and allowance rates visit gov.uk/capital-allowances or speak to our tax team.