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Costs you can claim as capital allowances

Last updated: 08 Jun 2020

When you buy something you use in your business, for example: Business vehicles, cars, vans or lorries.

Capital Allowances can be claimed for the cost of the vehicle, whether new or used when purchased.

The rate is 18% for vehicles with CO2 emissions below 130g/km, and 8% for vehicles with CO2 emissions above 130g/km. You don't need to work this out; the app does this for you. You just need to enter the CO2 emissions in "My Account" area. You will find this information on the vehicles V5.

Note:

You cannot claim capital allowance if you are using Mileage Allowance.

You cannot claim capital allowances if you use your £1,000 tax-free 'trading allowance'.

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