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Plant and machinery and other capital expenditure
Annual Investment Allowance
|Details||Rates & thresholds|
|from 01/01/2016 to 31/12/2018||£200,000|
|from 01/01/2019 to 31/12/2021||£1,000,000|
|from 01/01/2022 to 31/03/2023||£200,000|
|A "superdeduction" at 130% of qualifying expenditure is in place for expenditure from 1 April 2021 to 31 March 2023. The superdeduction is not limited in terms of the amount of qualifying expenditure which can be included.||130%|
|Enterprise zone plant & machinery||100%|
|Plant & Machinery (reducing balance) pa||18%|
|A 50% first-year allowance (FYA) for speacial rate (including long life) assets until 31 March 2023 for companies||50%|
|Patent rights & know-how (reducing balance) pa||25%|
|Certain long-life assets, integral features of buildings (reducing balance) pa||6%|
|Energy & water-efficient equipment||100%|
|Structures and buildings allowance (SBA)||3%|
|Research and Development Allowance (RDA)||100%|
Corporation Tax – Expenditure on or after 01/04/2021
Income Tax – Expenditure on or after 06/04/2021
|Capital allowance||100% first year||18% reducing balance pa||6% reducing balance pa|
|CO2 emissions of g/km:||<0 or electrically propelled||1-50||>Over 51|
Corporation Tax – Expenditure on or after 01/04/2015 but before 31/03/2021
Income Tax – Expenditure on or after 06/04/2015 but before 05/04/2021
|Capital allowance||100% first year||18% reducing balance pa||6% reducing balance pa1|
|co2 emissions of g/km:||<≤50 or electrically propelled||51-110||>>111|
Corporation Tax – Expenditure on or after 01/04/2013 but before 31/03/2015
Income Tax – Expenditure on or after 06/04/2013 but before 05/04/2015
|Capital allowance||100% first year||18% reducing balance pa||8% reducing balance pa1|
|CO2 emissions og g/km:||<95||96-130||>131|
 8% until April 19, 6% from 1st April 2019 for companies and 6th April 2019 for individuals.
 From 29 October 2018, capital allowance at a rate of 2% will be available for new qualifying non-residential structures and buildings on a straight-line basis.
 RDA is only due if the research and development (R&D) expenditure is related to the trade being carried on or about to be carried on. R&D related to a trade includes any expenditure which may lead to or facilitate an extension of the trade; and medical research which has a special relation to the welfare of workers employed in that trade.
Research & Development Tax Credits
|SME enhanced deduction scheme||130%||130%||A|
|SME cash credit for R&D loss surrendered||14.5%||14.5%|
|Large company above the line scheme credit (RDEC)||13%||13%||B|
[A] Additional (enhanced) tax deduction available for qualifying R&D expenditure. From 1 April 2016, the only scheme available to large companies is RDEC.
[B] Tax credit available on qualifying R&D expenditure. RDEC rate increased to 12% on qualifying expenditure incurred on or after 1 Januaray 2018. The rate was 11% prior to the change
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