Estimate the tax saving from claiming capital allowances on plant & machinery.
Your Corporation Tax rate is set automatically from profit, including marginal relief between and .
Relief is given at your marginal Income Tax rate (the allowance also saves Class 4 NI in many cases - not included here).
AIA gives 100% relief on most plant & machinery (up to a year), so the whole cost reduces taxable profit in year one. Writing-down allowances spread relief over many years on a reducing balance.
Tax saving
claimed in year one at over the asset's life at
Estimate only. Eligibility, pooling and balancing charges depend on your circumstances.
How quickly each method delivers the tax saving. AIA front-loads the whole relief; writing-down allowances trickle it out over many years.
| Year | Allowance | Tax saved | Pool balance left |
|---|---|---|---|
Reducing-balance method: each year you claim of the remaining pool. Shown until 95% of relief is given.
The Capital Allowances Calculator does more than show a number. Below your result it explains what your figures mean in practice - your effective and marginal rates, any allowances or thresholds you are close to, and the specific steps to take next. Enter your details above and the guidance updates to match your situation.
Do this next, in order
Estimates only - not financial or tax advice. Confirm figures on GOV.UK or with an adviser.
| Scenario | Method | Year-1 saving | Total saving | |
|---|---|---|---|---|
Capital Allowances Calculator by TaxFly — free UK tax calculators