This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Revenue expenditure v capital expenditure: What can be claimed?

Shared from Tax Insider: Revenue expenditure v capital expenditure: What can be claimed?
By Sarah Bradford, November 2021

Sarah Bradford explains the difference between revenue expenditure and capital expenditure and how the tax system provides relief for different types of expenditure. 

As far as the tax system is concerned, not all types of expenditure are equal; a distinction is drawn between revenue expenditure and capital expenditure. This distinction is important as it determines the extent to which and the way relief for the expenditure, if any, is given.  

For capital expenditure, it is also necessary to take into consideration how the accounts are prepared, as different relief mechanisms apply to the ‘cash basis’ and the ‘accruals basis’. 

No simple test 

One of the difficulties in determining whether a particular item of expenditure is revenue rather than capital expenditure is that there is no single,

This is one of our 2129 Premium articles

To see this article in full and unlock access to our complete library of 2129 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!