Capital expenditure incurred by a person carrying on a trade, profession or business on the provision of plant and machinery for purposes of the trade, profession or business can qualify for capital allowances claim.
There are circumstances where you may wish to defer capital allowance claims.
Typically, companies defer capital allowance when:
(a) the company is in a loss position; or
(b) the company qualifies for tax exemption for new start-up companies.
Businesses can claim capital allowances when the expense has been incurred. An expense is incurred when the legal liability to pay has arisen, regardless of the date of actual payment of the money.