Tax & Regulation
Can I write off my mining rig? (AIA / Capital Allowances)
Mining equipment qualifies for Annual Investment Allowance: 100% deduction in Year 1, up to £1M. Saves £5,600-£11,200 on a £28K rig.
Yes — if your mining activity qualifies as a trade. Mining equipment (GPUs, motherboards, PSUs, frames) is classified as "plant and machinery" and qualifies for capital allowances.
| Allowance | What It Covers | Deduction | Limit |
|---|---|---|---|
| Annual Investment Allowance (AIA) | All qualifying equipment | 100% in Year 1 | Up to £1,000,000 |
| Writing Down Allowance (WDA) | If AIA not used | 18% per year (reducing balance) | No limit |
| Full Expensing (companies) | Qualifying plant & machinery | 100% in Year 1 | No limit (from Apr 2023) |
🎯 Practical example: You buy a Miner 1000 for £28,000. As a sole trader with mining as a trade, you claim 100% AIA in Year 1. At the 20% basic rate, this saves you £5,600 in Income Tax. At the 40% higher rate, the saving is £11,200.
Key requirement: HMRC must consider your mining a "trade" (see FAQ below). For most dedicated miners with multiple rigs, consistent activity, and profit intent, this is achievable. Hobby miners typically cannot claim capital allowances.
ℹ️ The AIA applies to sole traders, partnerships, and companies. It covers the full cost of equipment in the year of purchase — no need to spread the deduction over multiple years.