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Property income (continued) Capital expenditure - Plant and Machinery If your property business is under the accruals basis, you may claim capital allowances on capital expenditure on plant and machinery such as vehicles, computers and tools (ladders and lawnmowers) used in your property business. You, however, cannot claim capital allowances on plant and machinery if you fall under the cash basis. You will instead obtain relief for capital expenditure on plant and machinery by deducting the cost of the asset you purchase but this does not include cars used in the business. Since you cannot deduct the cost of a car from your income, capital allowances can therefore be claimed (under the cash basis). If you have chosen to deduct flat rate expenses for your vehicle, then you cannot claim capital allowances on that vehicle. And there is no relief for the initial cost of domestic items such as furniture and household equipment provided by you for use in the residential property (both the cash and accruals basis) unless the property is furnished holiday letting.