Sarah Bradford explains how the capital allowances changes announced in Autumn Budget 2025 will impact claims.
Traders cannot deduct capital expenditure when calculating their taxable profit unless they use the cash basis and the expenditure is of a type for which a deduction is permitted under the cash basis capital expenditure rules. Instead, relief for qualifying expenditure is given through the capital allowances system. When it comes to expenditure on plant and machinery, there are a number of different routes by which relief can be secured.
At the time of the Autumn &
