2 min read
Definition
A fixed asset (or non-current asset) is a tangible resource held for long-term use in the business rather than resale — land, buildings, machinery, vehicles. Its cost is spread over its life via a depreciation schedule.
In plain terms
It is the kit you keep and use, not the stock you sell. A van is a fixed asset for a courier; the parcels are not.
Why it matters for your company
Fixed assets anchor the top of your balance sheet and often serve as security. Buying them can trigger valuable capital allowances. Fund equipment without draining cash via asset finance.
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Tangible asset
A tangible asset is a physical asset you can touch and sell — property, plant, vehicles, stock. Because they…
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A depreciation schedule spreads the cost of a fixed asset across its useful life in your accounts — matching…
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Capital allowance
Capital allowances are the tax version of depreciation — the mechanism that lets you deduct the cost of…
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Asset finance
Asset finance lets a business acquire equipment, vehicles or machinery by spreading the cost over time,…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.