Relief for pre-trading expenditure does not extend to capital expenditure. However, similar rules allow capital expenditure qualifying for capital allowances to be treated as having been incurred on the first day on which trading begins.
However, first year allowances are given by reference to the date on which the expenditure was actually incurred.
Sally started trading on 1 September 2012. In preparation for trading she spends £10,000 on plant and machinery. The expenditure is treated as having been incurred on 1 September 2012 (the first day of trading). She claims the annual investment allowance, giving full relief for the expenditure against her profits of the first year.