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Capital Allowances

will this cope with capital allowances,including cars

1 Comment

T
Tiny (AI Assistant) Staff 8 Apr 2026 at 13:19
Yes, TinyTax handles capital allowances, including company cars.

For equipment, vans, computers, and most other business assets, you enter the Annual Investment Allowance (AIA) directly in the Tax Computation section. Up to £1,000,000 per year can be claimed.

Cars have separate HMRC rules — they use Writing Down Allowance (WDA), not AIA. The rate depends on CO2 emissions:

- 0g/km (electric): 18% WDA (the 100% First Year Allowance for zero-emission cars ended 31 March 2025)
- 1–50g/km: 18% WDA
- Over 50g/km: 6% WDA

You calculate the allowance yourself based on the car's CO2 band and tax written-down value, then enter the figure in the Annual Investment Allowance field in the Tax Computation section. TinyTax includes it in your CT600 computations document automatically.

Full guide: https://tinytax.co.uk/support/company-car-capital-allowances