Capital on Tap's Free Avios Changes: What You Need to Know (And Why It Is Still Be Worth It)

I've just received an important email from Capital on Tap that all free plan users should know about. Starting 4th June 2025, the Avios conversion rate for free tier customers will change from the current 10:10 (10 reward points = 10 Avios) to 10:8 (10 reward points = 8 Avios).

This change takes effect in just two days for existing customers, representing a 20% reduction in Avios earning power for free customers. But before you panic, let's put this into perspective.

The Reality Check: It's Still Brilliant Value

Even with the reduced conversion rate, Capital on Tap's free plan remains one of the best Avios-earning opportunities available to UK business owners. Here's why:

Current free plan earning rate (from June 2025):

• 0.8 Avios per £1 spent (down from 1 Avios per £1)

• No annual fee

• No foreign transaction fees

Compare this to other UK Avios-earning credit cards:

• British Airways American Express: 1.5 Avios per £1, FX fees (£250 annual fee)

• American Express Gold Business: 1 Avios per £1, FX fees (£195 annual fee after 1st year)

When you factor in the annual fees, Capital on Tap's free offering still delivers exceptional value, especially for smaller businesses or those just starting their Avios journey. You'd need to spend £31,250 annually on the British Airways Amex just for the extra Avios to offset that £250 annual fee versus Capital on Tap's free rate.

The Pro Plan Option: Worth Considering?

Capital on Tap is offering existing customers the chance to upgrade to their Pro plan for £199 in the first year (normally £299), which maintains the 1:1 Avios conversion rate plus additional benefits.

Pro plan benefits include:

• 1 Avios per £1 spent (1:1 conversion)

• Priority Pass Lounge access

• Radisson Rewards VIP status (huge fan of this)

Whether this makes sense depends on your spending patterns. If you spend more than £2,500 per year on the card, the Pro plan could pay for itself through the improved Avios rate alone.

My Personal Take

As someone who holds two Capital on Tap business cards and has been recommending them consistently, I see this change as Capital on Tap maturing their business model rather than a significant devaluation. They've been incredibly generous offering 1 Avios per £1 with no annual fee for so long.

The short notice is less than ideal – giving customers just two days to decide on the Pro upgrade isn't particularly customer-friendly. However, the fundamental value proposition remains strong.

What Should You Do?

If you're already a Capital on Tap customer:

• Review your annual spending to determine if the Pro upgrade makes financial sense

• Remember that even the reduced rate still offers excellent value

• Consider this alongside your other business credit card options

If you don't have a Capital on Tap card yet:

• The free plan will still be one of the best no-fee Avios earners available

• Apply now if you've been considering it

The Bigger Picture

This change reflects the evolving landscape of UK rewards credit cards. As American Express continues to dominate the premium space and traditional banks maintain their fee-based models, Capital on Tap's approach of offering genuine value at the free tier remains refreshing.

Even with the reduced conversion rate, earning 0.8 Avios per £1 with no annual fee, no foreign transaction fees, and the flexibility of a business credit card makes this one of the standout products in the UK market.

Why it's still worth holding:

• Zero annual fee means no downside to keeping it in your wallet

• Excellent backup card for international spending (no FX fees)

• Still competitive Avios earning rate

• Useful for business expenses where other cards don't offer bonuses

The key is understanding where this fits in your broader points and miles strategy. For many business owners, this will continue to be their primary Avios earner, while others might use it as a complementary card alongside premium options like the American Express Platinum Business.

Capital on Tap has been consistently transparent about changes and generous with their offerings. This adjustment feels like a natural evolution rather than a betrayal of their customer base. For UK business owners looking to earn Avios, it remains an essential card to hold in 2025, even if it's no longer the standout it once was.

Interested in maximising your Avios earning? Check out our comprehensive guide to the best UK business credit cards for Avios or use our Avios calculator to see how many points you need for your next trip.