Capital Allowances

by Sarah Laing
access120 days access
cpd hours4 CPD hours

This course will enable you to:

  • Understand the basics of capital allowances
  • Define what is and isn’t capital expenditure
  • Recognise who can claim capital allowances and how they are claimed
  • Identify different capital ‘pools’ and the rules for each
  • Advise on capital allowances for cars, structures and buildings
  • Avoid some common pitfalls

Capital allowances reduce a business’s taxable profits and enable it to retain more of its profits. With depreciation not allowable for tax purposes, a thorough understanding of capital allowances is critical in managing the tax liability for any business with capital expenditure.

This course explains how to identify capital expenditure and whether it is allowable, and explains capital allowances and the practical issues you could encounter. You'll discover different capital allowances 'pools' and rules for each, as well as the reliefs available for cars and structures and buildings.

Introduction to capital allowances

  • Claiming capital allowances
  • Finding the tax legislation
  • Explaining capital expenditure
  • Plant and machinery
  • Other types of capital allowances

Pooling and fast-track allowances

  • Explaining pooling
  • Understanding first year allowances
  • The AIA
  • General exclusions

Further allowances

  • Available reliefs for cars
  • Dealing with structures and buildings
  • The key features of SBAs
  • Qualifying activities
  • Claiming SBAs
  • Other types of expenditure

Practical issues

  • The date of expenditure
  • Time limits for capital allowances
  • AIAs and WDAs
  • Getting the timing right

Sarah Laing is a Chartered Tax Adviser. She has been writing professionally since 1998 when she joined CCH Editions as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).

Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms, and now works as a freelance author providing technical writing services for the tax and accountancy profession.

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Verifiable CPD
Your course counts as verifiable CPD, if you can answer "yes" to these questions:

  1. Was the learning activity relevant to your career?
  2. Can you explain how you will apply the learning in the workplace?

You select courses that meet these criteria, and as you complete each course you get a CPD certificate so you can provide ACCA with the evidence that you undertook the learning activity.