Rewards

Capital On Tap Cashback vs Avios: Which Rewards Are Better in 2026?

By Afshin · 20 April 2026 · 7 min read

When you earn Capital On Tap points (1 point per £1 spent), you can redeem them for cashback (£1 = 100 points = 1% rate), book travel, or transfer to Avios at British Airways Executive Club (1:1). The right choice depends on how you'd actually redeem the Avios. Here's the honest comparison.

How Capital On Tap rewards work

Capital On Tap pays 1 point per £1 spent on the standard Business Credit Card and 1.5 points per £1 on the Business Rewards Card (which costs £99/year). Points never expire while your account is open. You choose between three redemption paths in the Capital On Tap app.

• Cashback — 100 points = £1 statement credit. Effective rate: 1% (or 1.5% on Rewards Card).
• Travel — Book flights and hotels at varying point values via the in-app travel portal. Typical value: 0.7p–1.1p per point. Usually worse than cashback.
• Avios transfer — 1 Capital On Tap point = 1 Avios at British Airways Executive Club. Value depends entirely on how you redeem the Avios.

What is an Avios actually worth in 2026?

The single biggest determinant of whether Avios beat cashback is how you'd redeem them. Here are the typical UK redemption rates as of 2026:

• Reward Flight Saver short-haul economy (e.g. London → Amsterdam) — around 1.0p–1.4p per Avios after taxes
• Reward Flight Saver short-haul Club Europe (business class) — around 1.6p–2.2p per Avios
• Long-haul economy (e.g. London → New York) — around 1.0p–1.5p per Avios
• Long-haul Club World (business class) — around 2.5p–4.0p per Avios — the sweet spot
• First Class long-haul — 3p–6p per Avios but very high tax surcharges

Worked examples by annual spend

Let's run the maths for three typical UK SMEs spending exclusively on the standard Capital On Tap card (1 point per £1):

• £20,000 annual spend → 20,000 points. Cashback: £200. Avios in Club Europe (~2p): £400. Avios in Club World (~3p): £600.
• £50,000 annual spend → 50,000 points. Cashback: £500. Avios in Club Europe: £1,000. Avios in Club World: £1,500.
• £100,000 annual spend → 100,000 points. Cashback: £1,000. Avios in Club Europe: £2,000. Avios in Club World: £3,000.

When cashback wins

Cashback is the better choice if any of the following apply: you don't fly British Airways or Iberia regularly; you only book economy short-haul; your business spend is below ~£20k/year (small Avios pots are hard to redeem at high value); you want predictable, statement-credit returns; or you simply prefer the simplicity of money over points.

When Avios wins

Avios is the better choice if you fly Club Europe or Club World on British Airways at least once a year, you're already in BA Executive Club and stacking Avios from other sources, or your business spend is high (£50k+/year) and you can plan a redemption months ahead. The 2.5p+ per Avios you can extract from premium cabin redemptions doubles or triples cashback's effective return.

Should you upgrade to the Business Rewards Card?

The Business Rewards Card costs £99/year and earns 1.5 points per £1 (versus 1 point per £1 on the free card). The break-even is at £19,800 annual spend (the extra 0.5 points × £19,800 = 9,900 points = £99 in cashback). If you spend above £20k/year on the card and redeem as cashback, the Rewards Card pays for itself. If you redeem as Avios at 2p+ per point, the break-even drops to about £10k/year.