What can you claim as a capital allowance?
Capital allowances allow you to deduct some or all of the value of an item from your profits before you pay tax. Here’s what you need to know.
Business rates
Properties subject to business rates will be revalued in 2023.
Corporation tax up
When the current Prime Minister was Chancellor, he announced an increase in the main rate of corporation tax to 25% to apply to profits above £250,000 from 1 April 2023. Under the previous administration this decision was reversed but the 25% rate will now apply next year.
Capital gains and inheritance tax
Capital gains made by individuals are generally taxed at lower rates to income and taxpayers benefit from a separate annual exemption that covers the first £12,300 of gains made per year.
Income tax
The main income tax thresholds and allowances had already been frozen at the 2021-22 levels until 2026 and that has been extended to 6 April 2028.
Dividend tax
Dividends are taxed at much lower rates than other forms of income and they are not subject to national insurance contributions (NIC).