Free calculator · UK 2026/27 rates
Dental Equipment Capital Allowance Calculator (FA 2026)
Enter your planned spend on dental equipment (chairs, CBCT and imaging, CAD-CAM, decontamination room kit) and on integral features in a fit-out (electrical systems, plumbing, air conditioning). Pick the tax rate that applies to your practice structure. The calculator allocates the spend across the Annual Investment Allowance, the new 40% first-year allowance introduced by FA 2026 and the writing-down allowances, then shows your year-1 and cumulative 4-year tax saving.
Dental Equipment Capital Allowance Calculator (FA 2026)
Enter your planned spend on dental equipment (chairs, CBCT and imaging, CAD-CAM, decontamination room kit) and on integral features in a fit-out (electrical systems, plumbing, air conditioning). Pick the tax rate that applies to your practice structure. The calculator allocates the spend across the Annual Investment Allowance, the new 40% first-year allowance introduced by FA 2026 and the writing-down allowances, then shows your year-1 and cumulative 4-year tax saving.
Main-rate plant and machinery: dental chairs and units, imaging, milling machines, autoclaves, cabinetry and loose fit-out.
Special-rate expenditure: electrical and lighting systems, hot and cold water, air conditioning and ventilation installed as part of a surgery fit-out.
The marginal rate the allowances save tax at. The 40% first-year allowance is available to companies and unincorporated businesses alike.
£1,000,000 per year, shared across a group and reduced by other qualifying spend already made this year.
AIA is allocated to integral features first (they otherwise get only 6% a year), then to equipment. Assumes a 12-month period, no other pool movements, and sufficient profits to absorb the relief. Companies with profits between £50,000 and £250,000 save at an effective marginal rate of 26.5%, more than either option shown.
Sense-check your figure with a specialist dental accountant
Calculators give you a solid starting point, but the final number depends on your NHS Pension status, prior-year reliefs, and how different taxes interact in your specific structure. A short conversation with a dental-specialist accountant puts a firm figure on it, with no obligation.
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Sole trader or partnership vs limited company on the same profit, after income tax, NIC, corporation tax and dividend tax. The NHS Pension trap made explicit.
| A | B | C | D | E | F | G | H | I | J | K | |
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| 1 | Your figures (edit the blue cells) | Comparison | |||||||||
| 2 | Practice profit | £120,000 | Net cash (partnership) | £76,732 | |||||||
| 3 | Active NHS Pension member | Yes | Total tax (partnership) | £43,268 | |||||||
| 4 | Net cash (limited company) | £72,279 | |||||||||
| 5 | Total tax and admin (Ltd) | £47,721 | |||||||||
| 6 | Sole trader or partnership keeps £4,210 more, and preserves NHS Pension accrual | ||||||||||
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How FA 2026 changed the maths on dental equipment, with two worked examples
Finance Act 2026 made two changes that matter when a practice buys equipment. The main-rate writing-down allowance fell from 18% to 14% a year (section 28), so anything that misses year-1 relief is now relieved noticeably more slowly. In exchange, section 29 introduced a 40% first-year allowance for companies buying new main-rate assets. The £1,000,000 Annual Investment Allowance and the 6% special rate for integral features are unchanged.
Worked example 1: a limited company practice spends £120,000 on a new chair, CBCT unit and decontamination room kit, plus £30,000 on integral features (electrics, plumbing, air conditioning) in the fit-out. Total spend £150,000 is comfortably within the £1,000,000 AIA, so the whole amount is deducted in year 1. At the 25% main rate of corporation tax that is a £37,500 tax saving in the year of purchase. For most single-practice purchases, AIA does all the work.
Worked example 2: a company doing a multi-surgery refit spends £1,100,000 on equipment and £300,000 on integral features. The AIA is allocated to the £300,000 of integral features first (they would otherwise crawl out at 6% a year), leaving £700,000 of AIA for equipment. The £400,000 of equipment above the AIA qualifies for the new 40% first-year allowance: £160,000 in year 1, with the remaining £240,000 entering the main pool at 14% reducing balance from year 2. Year-1 allowances are £1,160,000, saving £290,000 at 25%. Over 4 years the allowances reach roughly £1,247,000, saving about £311,800.
Unlike full expensing, the 40% first-year allowance is open to sole traders and partnerships as well as companies, provided the assets are new and unused. It only bites once spend exceeds the available AIA, because AIA already gives 100% year-1 relief and is claimed first, worth more per pound (up to 45% at income tax rates) than the 40% FYA. The ordering rule is the same for every structure: use AIA against special-rate expenditure first.
Frequently asked
- What counts as main-rate equipment and what counts as an integral feature?
- Dental chairs and units, CBCT and other imaging equipment, CAD-CAM milling machines, autoclaves and washer disinfectors, compressors, suction units, cabinetry and loose furniture are main-rate plant and machinery. Integral features are systems built into the premises during a fit-out: electrical and lighting systems, hot and cold water systems, air conditioning and ventilation. Integral features fall into the special-rate pool at only 6% a year, which is why the calculator uses your AIA against them first.
- Who can claim the new 40% first-year allowance?
- All businesses, on new, unused main-rate assets. FA 2026 section 29 introduced it alongside the cut in the main writing-down allowance from 18% to 14% (section 28). Unlike full expensing, it is not restricted to companies: sole traders and partnerships can claim it too. Second-hand equipment and cars do not qualify. In practice it only matters once your qualifying spend exceeds the available Annual Investment Allowance, because AIA already gives 100% relief and is claimed first.
- Is it better to lease or buy dental equipment for tax?
- Buying (including hire purchase, where you commit to ownership) gives capital allowances: up to 100% relief in year 1 through the AIA. With an operating lease you never own the asset, so there are no capital allowances, but the rentals are usually deductible as a trading expense as they fall due, spreading relief over the lease term. Buying front-loads the relief; leasing spreads it and preserves cash. The right answer depends on cash flow, the finance rate and whether your profits can absorb a large year-1 deduction, so model both before signing.
- What if my profits are too low to use all the relief in year 1?
- Capital allowances cannot create relief you cannot use, but losses they create can be carried forward, and companies can often carry a loss back 12 months against prior-year profits. You can also claim less than the full AIA or first-year allowance and leave the balance in the pool for future writing-down allowances. If a large purchase would push your taxable profit below the personal allowance or the corporation tax small-profits threshold, a partial claim can be worth more overall.
- Does the £1,000,000 AIA cover both equipment and fit-out spend?
- Yes. The AIA covers both main-rate and special-rate expenditure, up to £1,000,000 of total qualifying spend per year, shared across a group of companies or businesses under common control. Because special-rate assets otherwise attract only 6% a year against 14% for main-rate assets, allocating AIA to integral features first is the standard ordering and is what this calculator does.
- When do these FA 2026 rates apply from?
- Finance Act 2026 was enacted on 18 March 2026. The reduction of the main writing-down allowance from 18% to 14% and the new 40% first-year allowance apply for the 2026/27 year onwards. The special rate stays at 6% and the AIA stays at £1,000,000. If your accounting period straddles the change, allowances are apportioned, so confirm the exact treatment with your accountant.
Get the full picture
Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on your NHS Pension status, prior-year usage, other income, and how decisions interact. Take the free practice health check to get a personalised view.