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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.


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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