Capital allowances let you claim tax relief on certain business assets, like equipment, machinery, and vehicles, by deducting a portion of their cost from your taxable profits. Instead of deducting the whole cost in one go (unless you’re using the Annual Investment Allowance), you often spread the relief over several years. This helps businesses invest in what they need to grow, while lowering their tax bill a little each year.
The rules vary depending on the type of asset, so it’s worth checking what qualifies before you splash out.