I am a sole trader wedding cake maker, working from home. I had to buy a new oven, and I don't know if I can claim any or all of the cost against self-employment profits on my tax return?
Arthur Weller replies:
It seems to me that you can claim the annual investment allowance (AIA) capital allowance for the purchase of this oven, based on the AIA rules. Actually, AIA is not available for long-life assets or integral features. But the definition of a ‘long life’ asset is one that, when first bought new, has an expected working life of 25 years or more. If you look at HMRC’s internal Capital Allowances manual at CA22320, it seems that your oven does not fit into the integral features category.