Capital Allowances

Like this page? Share it with your friends


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 31/12/2021£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 & machinery100%
Plant & Machinery (reducing balance) pa18%
A 50% first-year allowance (FYA) for speacial rate (including long life) assets until 31 March 2023 for companies50%
Patent rights & know-how (reducing balance) pa25%
Certain long-life assets, integral features of buildings (reducing balance) pa6%[1]
Energy & water-efficient equipment100%
Electric vans100%
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 allowance100% first year18% reducing balance pa6% reducing balance pa
CO2 emissions of g/km:<0 or electrically propelled1-50>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 allowance100% first year18% reducing balance pa6% 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 allowance100% first year18% reducing balance pa8% reducing balance pa1
CO2 emissions og g/km:<9596-130>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

SME enhanced deduction scheme130%130%A
SME cash credit for R&D loss surrendered14.5%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

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Related pages:

Get further information from the following pages;

Explore our services

Knowledge & resources

Tax rates card


Tax tables

Who we help?

Related Blogs:

Get further information from the following blogs;


News & recent developments