Capital Allowances

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Plant and machinery and other capital expenditure

Annual Investment Allowance

DetailsRates & thresholds
from 01/01/2016 to 31/12/2018 £200,000
from 01/01/2019 to 31/12/2020 £1,000,000
from 01/01/2021 £200,000
Enterprise zone plant & machinery 100%
Plant & Machinery (reducing balance) pa 18%
Patent rights & know-how (reducing balance) pa 25%
Certain long-life assets, integral features of buildings (reducing balance) pa 6%[1]
Energy & water-efficient equipment 100%
Electric vans 100%
Structures and buildings allowance (SBA)[2] 100%
Research and Development Allowance (RDA)[3] 100%

Motor Cars

Corporation Tax – Expenditure on or after 01/04/2019

Income Tax – Expenditure on or after 06/04/2019

CO2 emissions of g/km:<50 or electrically propelled51-110>111
Capital allowance 100% first year 18% reducing balance pa 6% reducing balance pa

Corporation Tax – Expenditure on or after 01/04/2015 but before 31/03/2018

Income Tax – Expenditure on or after 06/04/2015 but before 05/04/2018

CO2 emissions of g/km:<7576-130>131
Capital allowance 100% first year 18% reducing balance pa 8% reducing balance pa1

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

CO2 emissions of g/km:<9596-130>131
Capital allowance 100% first year 18% reducing balance pa 8% reducing balance pa1
[1] 8% until April 19, 6% from 1st April 2019 for companies and 6th April 2019 for individuals.
[2] 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.
[3] 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.

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Income Tax Rates

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