Skip to main content

Tax allowances, reliefs and incentives

The Tax Guide, in association with HMRC have outlined  a variety of tax allowances, reliefs and incentives that might be useful to your business.

Capital allowances

There are a number of capital allowances schemes to encourage investment in particular assets or by particular sorts of businesses. This gives tax relief on business equipment, like computers, cars, tools or furniture that you intend to keep. And in your first year of business, there are some extra allowances.

You cannot claim for things you buy or sell as your trade – these are claimed as business expenses. If you buy on hire purchase, you can claim a capital allowance on the original cost of the item but the interest and other charges count as business expenses. For more information visit www.hmrc.gov.uk/incometax/reliefcapital.htm

Research and development tax credits

Research and development (R&D) tax credits are a company tax relief which can either reduce a company’s tax bill or, for some small or medium sized companies, provide a cash sum.

The aim of the tax credits is to encourage greater R&D spending in order to promote investment in innovation. To find out whether you can benefit, visit www.hmrc.gov.uk/randd/index.htm

Direct investment incentives

These schemes all offer tax incentives to encourage direct investment in qualifying companies (but not other types of
business). For more information on the Enterprise Investment Scheme or the Corporate Venturing Scheme email enterprise.centre@hmrc.gsi.gov.uk.

Growth Company Investor: free trial