An annual fixed assets claim refers to claiming capital allowances on long-term business assets, such as equipment, machinery, or vehicles.
Instead of deducting the full cost of an asset in one year, you claim a percentage of it each year over time.
Examples of capital allowance rates:
- Plant & machinery: 12.5% over 8 years
- Industrial buildings: 4% over 25 years
Example:
If you buy equipment for €40,000, you can claim €5,000 per year (12.5%) for 8 years against your taxable profits.
To claim:
- The asset must be used wholly and exclusively for the business.
- Include the claim in your Form 11 tax return.
