Capital allowances and expenses

Effective life of an asset

To use either of the depreciation methods, you have to work out how long the asset can be used to produce income - its effective life.

General depreciation rules - capital allowances

General depreciation rules set the amounts (capital allowances) that can be claimed based on the asset's effective life.

Other capital asset and expense deductions

Special rules apply to claiming deductions for certain depreciating assets and other business capital expenses.