Claim valuable tax relief on your practice investments
If you’ve invested in equipment, dental chairs, furniture, or other business assets for your practice, capital allowances can significantly reduce your tax bill. These allowances allow you to deduct the cost of qualifying items from your taxable profits, effectively treating them like business expenses spread over time.
To be eligible, you must be a UK taxpayer, own or use a dental practice, and be generating taxable profits. Capital allowances reflect the fact that assets lose value over time due to wear and use.
What types of capital allowances can you claim?
Annual Investment Allowance (AIA): Offers 100% tax relief in the year you buy qualifying assets, up to a set limit. Ideal for major purchases like dental chairs or diagnostic equipment. First-Year Allowances (FYA): Allow you to deduct a percentage of the asset’s cost upfront for certain energy-efficient or environmentally beneficial assets. Writing Down Allowances (WDA): Used when AIA or FYA aren’t available, allowing you to deduct a portion of the asset’s cost each year over time.
When should you seek advice?
You can claim capital allowances as long as you still own the asset, even if you didn’t claim in the year of purchase. It’s worth reviewing historic purchases to identify any missed reliefs.
Thinking of upgrading equipment, refurbishing your surgery, or buying new tech? Speak to one of our dental sector specialists before you commit. We can help you determine what qualifies and ensure you make the most of the available reliefs.
Our specialist dental team can help. If you would like further advice and support please get in touch. Call 0808 144 5575 or email help@armstrongwatson.co.uk.
