Unlike revenue expenditures, capital expenditures cannot be claimed as deductible expenses. Instead, HMRC allows the deduction of ‘capital allowances’. These provide tax relief for qualifying purchases not exceeding the annual limit determined by HMRC. This limit has been temporarily increased from £200,000 to £1,000,000 from 1 January 2022 to 31 March 2023 for qualifying plant and machinery costs.