When a business buys fixed assets, plant equipment, commercial vehicles, IT equipment, fixtures and fittings, it can claim the total cost against its trading profits (effectively reducing your profit for tax purposes). It is done using something called the Annual Investment Allowance. It is a type of capital allowance and can be used for spending up to £1m in 2019. For any spending in excess of that – you can only set 18% against your profit and the balance is carried forward to future years.