Capital Allowances on Location Equipment and Vehicles

Managing location shoots often means investing heavily in specialist equipment and transport. From camera rigs and lighting towers to vans and temporary power units, these costs add up quickly. Capital allowances on location equipment and vehicles help production companies offset investment against taxable profits, delivering real savings and releasing cash flow when needed. At Apex Accountants, we work closely with businesses in the creative and commercial sectors to secure the maximum benefit from capital allowances. With detailed knowledge of industry-specific expenses—such as drone licensing, generator installations, and crew transport—we claim every eligible pound for our clients.

This article explains how tax relief on location equipment and vehicles applies in practice. We cover what qualifies, the types of allowances available, numerical examples, case studies, and practical tips to help production companies improve their financial position.

What qualifies for relief?

Production work often involves high-value equipment and transport. Eligible assets typically include:

• Cameras, rigs, and sound gear – core filming equipment.
  
• Lighting and temporary power – including generators and towers.
  
• Drones – with licensing and modifications capitalised alongside purchase costs.
  
• Vehicles – vans, minibuses, and lorries for transporting crew and kit.
  
• IT hardware – laptops, on-site editing systems, and storage drives.

Businesses can only claim assets they own and use for work, while hire charges and private use remain excluded.

Examples of allowances in practice

• Annual Investment Allowance (AIA): If a production company spends £250,000 on new camera rigs, the AIA can give full relief in year one. At a 19% corporation tax rate, that saves £47,500 immediately.
  
• Cars and low-emission vehicles: Buying an electric crew car worth £35,000 could qualify for a 100% first-year allowance, cutting tax by £6,650 at 19%.
  
• Writing Down Allowances (WDA): A diesel van not qualifying for full AIA relief might be written down at 18% annually. For a £20,000 van, the first-year deduction would be £3,600.
  

Case Study: Location Equipment and Vehicles

At Apex Accountants, we recently worked with a UK film production company preparing for a major outdoor shoot. They invested in two location vans (£50,000), portable generators (£20,000), and specialist camera rigs (£60,000).

We structured the claims so the entire £130,000 spend qualified under the Annual Investment Allowance. This delivered a £24,700 tax saving in the first year at the 19% corporation tax rate.

By securing full relief upfront, the production company released vital cash flow to cover crew wages and on-site logistics. Without proper planning, several years would have been required to write off a significant portion of this expenditure. Our advice ensured they benefited immediately, aligning tax relief on location equipment and vehicles with project deadlines.

Practical tips for production companies

• Plan purchases before year-end to fully use the £1 million AIA limit.
• Stagger large investments across tax years to maximise available allowances.
• Prioritise low-emission crew vehicles for higher or immediate relief.
• Track incidental costs – delivery, installation, and modifications can all be added to the capitalised cost.
• Keep detailed logs to show assets are used exclusively for business.
• Use the Writing Down Allowance on vehicles and equipment when assets exceed AIA limits or fall into long-life categories.

Industry-Specific Quirks in Capital Allowances on Location Equipment and Vehicles

Production companies face unique expenses. For example, temporary site power units, generator installations, and drone licensing costs can all be capitalised. Many businesses miss these, leaving money unclaimed.

How Apex Accountants help

At Apex Accountants, we provide tailored support to production companies investing in equipment and vehicles. Our team reviews purchase records, supplier invoices, and usage logs to identify every cost that qualifies for capital allowances. We apply the right mix of annual investment allowance, writing down allowance on vehicles and equipment, and first-year allowance to maximise tax savings.

We also advise on the timing and structure of purchases, helping businesses align claims with project deadlines and cash flow needs. Whether it’s vans for transport, drones for aerial shots, or temporary power units for remote locations, we ensure nothing is overlooked.

By working with us, production companies benefit from immediate relief where possible, reduced corporation tax liabilities, and stronger cash flow for reinvestment in new projects.

Contact Apex Accountants today to discuss how capital allowances on location equipment and vehicles can support your production business.