SE36910 - Deductions from emoluments: capital allowances: example: first year allowance

This example shows how first year allowance is calculated in a straightforward case.

On 6 June 2000, an employee starts a new job in Exeter and has to spend £600 on a word processor in order to perform its duties. The word processor is used solely for work. As the expenditure was incurred in a qualifying period (see SE36630) the employee claims capital allowances as follows.

Note that the full 40% first year allowance is due even though the employee started the job part way through the tax year (see SE36610).

But if the employee had used the word processor partly for non-business purposes a private use adjustment would have been necessary (see SE36570).