Capital allowances in BrightTax are calculated within the CT return using the built-in Capital Allowances module. The module handles Annual Investment Allowance (AIA), Writing Down Allowances (WDA), First Year Allowances (FYA), and disposals across all qualifying asset pools.

• Ensure the Capital Allowances supplementary schedule has been ticked under Template > Supplementary Schedules.
• Have the asset details ready: description, date of purchase or disposal, cost or proceeds, and pool type.

1. Open the CT return and expand the CT navigation toolbar.
2. Click the Capital Allowances button in the toolbar.
3. The Capital Allowances module opens, showing the available asset pools.

1. In the Capital Allowances module, click View/Edit under the relevant pool.
2. Click Create to add a new entry.
3. Tick either Asset Addition or Asset Disposal.
4. Enter the asset description, date, and cost or proceeds.
5. Click Save. Repeat for each asset.
6. Click Save again when all assets for that pool have been entered.
7. Navigate to the Capital Allowance Summary using the left-hand menu to review the total allowances calculated.

Enterprise Zone capital allowances are no longer applicable for accounting periods starting on or after 1 April 2024. For these periods, BrightTax removes the Enterprise Zone capital allowances field automatically. If you are preparing a return for a period starting before 1 April 2024, the field will still be available.

The capital allowances figure is not feeding into the CT computation

• Ensure the Capital Allowances supplementary schedule has been ticked under Template > Supplementary Schedules.
• Check that you clicked Save after entering all assets in each pool.
• Re-run Check and Calculate to refresh the computation figures.

AIA is not being claimed on an eligible addition

• AIA is applied automatically to additions in the Main Pool and Special Rate Pool up to the AIA limit. Check the Capital Allowance Summary page to confirm the AIA has been applied. If the addition exceeds the AIA limit, WDA will apply to the excess.

Q: Where is the Annual Investment Allowance limit set?

A: BrightTax applies the correct AIA limit for the accounting period automatically. You do not need to enter the limit manually.

Q: Can I claim capital allowances on a car in the Main Pool?

A: Cars must go into the Single Asset pool if there is any private use. For zero-emission cars, a 100% First Year Allowance may apply — add this as an asset addition and select the FYA option.

Q: How do I view the capital allowances calculation breakdown?

A: Go to Capital Allowance Summary in the left-hand navigation within the Capital Allowances module. This shows the opening balance, additions, AIA claimed, WDA calculated, and closing balance for each pool.