Acquire assets and borrow money tax efficiently

Calculating tax relief when acquiring an asset


The tax relief available when acquiring business assets depends on whether you buy them outright, or on the type and length of the lease. For more information, see tax relief for buying or leasing assets.

When you buy plant, machinery and IT equipment, you can deduct a proportion of the cost of buying it from your taxable profits each year - known as capital allowances.

Capital allowances are usually a fixed proportion of the cost of the equipment, but many small and medium-sized businesses get a higher allowance in the year they buy the asset. See capital allowances.

HM Revenue & Customs provides further information on capital allowances.

In addition, GOV.UK provides information on capital gains tax for business.