Capital Allowances
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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%[1] |
Energy & water-efficient equipment | 100% |
Electric vans | 100% |
Structures and buildings allowance (SBA) | 3% |
Research and Development Allowance (RDA) | 100% |
Motor Cars
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 |
[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.
Research & Development Tax Credits
2020/21 | 2021/22 | Note | |
---|---|---|---|
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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