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Capital Allowances

How do i claim capital allowances - the software is calculating corporation tax when its not due as capital allowances wipes out the profit

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T
Tim Fouracre Staff 5 Feb 2026 at 15:00
You can claim capital allowances in the Tax Computation section of the submission form. Here's how:

1. In the Profit & Loss section, enter your depreciation figure (this gets automatically added back, since depreciation isn't tax-deductible).

2. In the Tax Computation section, enter the amount you're claiming in the "Less: Annual Investment Allowance" field (Box 735). This is capped at £1,000,000 per year.

The AIA amount is deducted from your adjusted profit, so if your capital allowances are large enough to wipe out the profit, the corporation tax due should come to nil.

If you're still seeing tax being calculated after entering your AIA figure, it may be that the amount entered doesn't fully cover the adjusted profit (after the depreciation add-back and any disallowable expenses). Check the tax computation breakdown on the preview page to see the full calculation.

We have a detailed guide here:

https://tinytax.co.uk/support/capital-allowances-aia