Capital Allowances

Key Requirements

The asset must qualify as plant or machinery used in the trade or business; premises and structural setting do not automatically qualify. The page offers one-year, three-year and prescribed working-life methods, with two-year treatment limited to specified expenditure YAs. Computers and prescribed automation equipment have accelerated treatment. Low-value assets costing no more than S$5,000 each may receive one-year write-off, subject to a S$30,000 total claim per YA. Hire-purchase claims follow their own principal-payment rules. Record the selected method, cost and tax written-down value in an asset schedule. Sale, transfer, conversion or disposal may produce a balancing allowance or charge, so allowances are not simply forgotten once the asset leaves the accounts.