{"id":1850,"date":"2025-08-26T15:58:12","date_gmt":"2025-08-26T15:58:12","guid":{"rendered":""},"modified":"2026-07-26T16:24:09","modified_gmt":"2026-07-26T14:24:09","slug":"key-findings-and-statistics-from-hmrcs-research-on-capital-allowances","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/key-findings-and-statistics-from-hmrcs-research-on-capital-allowances\/","title":{"rendered":"Key findings and statistics from HMRC\u2019s research on Capital Allowances"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1850\" class=\"elementor elementor-1850\" data-elementor-post-type=\"article\">\n\t\t\t\t<div class=\"elementor-element elementor-element-479b8191 e-flex e-con-boxed e-con e-parent\" data-id=\"479b8191\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-16b0c6d3 elementor-widget elementor-widget-text-editor\" data-id=\"16b0c6d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\n<p class=\"wp-block-paragraph\">HMRC recently published a brief but informative piece of <a href=\"https:\/\/www.gov.uk\/government\/publications\/research-on-capital-allowances\/executive-summary-research-on-capital-allowances\">research on Capital Allowances<\/a> aimed at creating a better understanding of how businesses use these allowances.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/majjane.leyton.com\/uk\/capital-allowances\/\">Capital Allowances<\/a> let businesses deduct some or all of the value of items from their profits before they pay tax. The main allowances are for <a href=\"https:\/\/majjane.leyton.com\/uk\/plant-and-machinery-allowances\/\">plant and machinery<\/a>, <a href=\"https:\/\/majjane.leyton.com\/uk\/structures-and-buildings-allowances\/\">structures and buildings<\/a>, and <a href=\"https:\/\/majjane.leyton.com\/uk\/research-and-development-allowances\/\">research and development<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the data was published in 2025, it focuses on how companies used Capital Allowances in the 2019-20 tax year. It also looks at the impact of the super-deduction allowance for the 2021-22 and 2022-23 tax years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The data is based on a sample of businesses, but although it\u2019s just a snapshot of what\u2019s happening in the UK, it does give us some insight into the decision-making process of businesses when it comes to claiming Capital Allowances \u2013 especially in terms of what\u2019s holding some back from taking full advantage of this valuable tax relief (unfortunately, a lack of awareness is partly to blame).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below, we summarise the key findings and statistics from HMRC\u2019s research on Capital Allowances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why do some businesses not claim Capital Allowances?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There were three main reasons uncovered for businesses deciding not to claim Capital Allowances:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>their investments were small-scale<\/li><li>they had limited awareness or understanding of the allowances<\/li><li>they were loss-making.<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Some businesses didn&#8217;t claim the&nbsp;super-deduction&nbsp;because they either had no qualifying investments planned before March 2023 (when the scheme ended), or their investments weren\u2019t eligible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Worryingly, the report highlights that many businesses didn&#8217;t claim the&nbsp;<a href=\"https:\/\/majjane.leyton.com\/uk\/structures-and-buildings-allowances\/\">structures and building allowance (SBA)<\/a>&nbsp;because they were unaware of it (even though they invested in buildings and structures). The lack of awareness is concerning as it means that some could be missing out on tax relief to which they\u2019re completely entitled to. Much more needs to be done to help communicate the benefits of these valuable allowances, as they can deliver huge savings for those investing in assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the most common types of assets eligible for Capital Allowances?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC research highlights that the most common eligible assets for Capital Allowances that claimant businesses invested in were:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>IT equipment (63%)<\/li><li>office equipment (46%)<\/li><li>machinery and tools (39%)<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">71% of businesses invested in at least two types of Capital Allowances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What was the impact of the super-deduction?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The super-deduction is a 130% first-year allowance for new and unused plant and machinery, available for assets bought from 1 April 2021 until 31 March 2023. The allowance has been followed by the full expensing scheme, which lets businesses write off 100% of the cost of their investment in one go for assets bought from 1 April 2023.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses that knew about the scheme:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>46% claimed it or planned to claim for investments made in 2021-22<\/li><li>42% intended to claim for investments planned for 2022-23<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">And for all businesses:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>11% claimed or planned to claim in 2021-22<\/li><li>10% planned to claim in 2022-23<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The research found that the introduction of super-deduction was successful in influencing the investment behaviour of 19% of businesses that had claimed or planned to claim in 2021-22. Of these:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>12% brought-forward investments<\/li><li>9% made new investments, which were originally unplanned<\/li><li>6% invested more than they\u2019d originally planned.<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">For 2022-23 the number of businesses influenced by the super-deduction, which planned to claim, rose to 29%. Of these:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>26% brought-forward investments<\/li><li>11% invested more than they\u2019d originally planned<\/li><li>5% made new investments, which were originally unplanned.<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How Leyton can help<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If your business has any questions about <a href=\"https:\/\/majjane.leyton.com\/uk\/capital-allowances\/\">Capital Allowances<\/a>, we\u2019d be more than happy to help. Our highly qualified experts have years of industry experience as well as an unrivalled understanding of Capital Allowances case law and HMRC guidance. We\u2019ll help you find every eligible asset and provide advice on the most tax-efficient way to claim, maximising your tax savings.<br><br><a href=\"https:\/\/majjane.leyton.com\/uk\/contact-us\/\">Speak to a friendly member of our team<\/a> to find out more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>If you enjoyed this article, you might also like:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/majjane.leyton.com\/uk\/insights\/articles\/our-guide-to-capital-allowances\/\"><em>Our guide to Capital Allowances<\/em><\/a><\/li>\n\n\n\n<li><em><a href=\"https:\/\/majjane.leyton.com\/uk\/insights\/articles\/uk-sme-statistics\/\">UK Small and Medium-sized enterprises (SMEs) business statistics<\/a><\/em><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>HMRC recently published a brief but informative piece of research on Capital Allowances aimed at creating a better understanding of how businesses use these allowances.&nbsp; Capital Allowances let businesses deduct some or all of the value of items from their profits before they pay tax. The main allowances are for plant and machinery, structures and [&hellip;]<\/p>\n","protected":false},"author":120,"featured_media":1927,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[109],"tags":[548,528,550],"expertise":[470],"class_list":["post-1850","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-allowances","tag-findings-en","tag-hmrc-en","tag-research-en","expertise-capital-allowances"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Key findings and statistics from HMRC\u2019s research on Capital Allowances - Leyton United Kingdom<\/title>\n<meta name=\"description\" content=\"HMRC recently published a brief but informative piece of research on Capital Allowances aimed at creating a better understanding of how businesses use We break down the key findings &amp; statistics from HMRC\u2019s research on Capital Allowances for the 2019-20 tax year, &amp; the impact of the super-deduction.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/uk\/insights\/articles\/key-findings-and-statistics-from-hmrcs-research-on-capital-allowances\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Key findings and statistics from HMRC\u2019s research on Capital Allowances\" \/>\n<meta property=\"og:description\" content=\"HMRC recently published a brief but informative piece of research on Capital Allowances aimed at creating a better understanding of how businesses use We break down the key findings &amp; statistics from HMRC\u2019s research on Capital Allowances for the 2019-20 tax year, &amp; the impact of the super-deduction.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/uk\/insights\/articles\/key-findings-and-statistics-from-hmrcs-research-on-capital-allowances\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-26T14:24:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/9\/files\/2025\/08\/Website-articles.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"711\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/uk\\\/insights\\\/articles\\\/key-findings-and-statistics-from-hmrcs-research-on-capital-allowances\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/uk\\\/insights\\\/articles\\\/key-findings-and-statistics-from-hmrcs-research-on-capital-allowances\\\/\",\"name\":\"Key findings and statistics from HMRC\u2019s research on Capital Allowances - 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