Welcome

"An immensely useful resource"... "My only question is - why did we not subscribe before..." "Stunning" ...Read More Reviews

This Practical Tax Database and Virtual Tax Partner® Toolkit is your online tax partner. It answers all your key tax FAQs, is packed with useful and practical tax and business guidance.

The information gathered here is split into tax planning guides, FAQs, know-how and tools. With worked examples and tax compliance checklists.

Register to receive our FREE news update service.

Subscribe to UNLOCK the full site.

Tax advice? Contact the Virtual Tax Partner® support service for advisers and their clients.

The contents of the site are subject to T & C & Copyright © 2020.


Capital allowances main rates

(see left-hand menu for detailed guidance on Capital allowances)

Type 2020/21 2019/20 2017/18 to 2018/19 2015/16 to 2016/17  2014/15 2013/14 2012/13 to 2014/15
Enhanced capital allowances (ECA) (energy-saving and environmentally beneficial plant and machinery) Withdrawn except in respect of Enterprise Zones 100% 100% 100% 100% 100% 100%

First Year Allowance: Electric car charging points

100% 100%

100%

100% from 23 November 2016

     

Enterprise Zone

Limit

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

Business Property Renovation - (withdrawn from April 2017) - (withdrawn from April 2017) - (withdrawn from April 2017)  100%  100%  100% 100%

Flat Conversion Allowance

- - -  -  -

 

-

100%

Landlord's Energy Savings Allowance

- - -  -  £1,500  £1,500 £1,500
Annual investment allowance (AIA)  100% 100% 100%  100%  100%  100% 100%
AIA annual limit   

From 1/6-April-12 £25,000

From 1-Jan-13 £250,000

From 1/6-April-14 £500,000

From 1-Jan-16 £200,000

From 1-Jan-19 £1,000,000

From 1-Jan-21 £200,000

First year allowance (FYA) for expenditure not covered by ECA or AIA - - -  -  -  - -
Writing down allowance (WDA) - general pool 18% 18% 18%  18%  18%  18% 18%
WDA - integral features and Long life assets 6% 6% 8%  8%  8%  8% 8%
Small pool write off, written down balance in either or both WDA pool(s) is £1,000 or less 100% 100% 100%  100%  100%  100% 100%
Structures and buildings allowance 3% straight line 2% straight line From 29/10/18 2% straight line - - - -

 

Motor cars 

 Cars purchased between from 1 April 2018/ 5 April 2018 if a sole trader or partnership

2018/19
to
2020/21

Type Rate
FYA for electric cars or if CO2 emissions are 50g/km or lower 100%
WDA if CO2 emissions are between 50g/km and 110g/km 18%
WDA (second hand vehicles) if CO2 emissions are less than 110g/km  18%
WDA if CO2 emissions exceed 110g/km 6%

 

Motor cars 

 Purchased between April 2015 and April 2018

2015/16 to 2018/19 

2014/15

2013/14  

 2012/13

 To 2011/12

Type  Rate  Rate Rate Rate Rate
FYA for electric cars or if CO2 emissions are 75g/km or lower 100%        
FYA for electric cars or if CO2 emissions are 95g/km or lower   100% 100%  -  -
FYA for electric cars or if CO2 emissions are 110g/km or lower    - - 100% 100%
WDA (second hand vehicles) if CO2 emissions do not exceed 130g/km 18%        
WDA if CO2 emissions exceed 75g/km but do not exceed 130g/km 18%        
WDA if CO2 emissions exceed 95g/km but do not exceed 130g/km   18% 18%  -  -
WDA if CO2 emissions exceed 110g/km but do not exceed 160g/km    -  - 18% 20%
WDA if CO2 emissions exceed 130g/km 8%  8% 8%  -  -
WDA if CO2 emissions exceed 160g/km    -  - 8% 10%

 

Finance Bill 2020 

Finance Bill 2020 includes proposals that:

  • From April 2021 the CO2 thresholds will be reduced:
    • The 100% FYA will only apply to zero emissions cars.
    • The 18% rate will apply to cars with CO2 between 1 and 50g/km.
    • The 6% will apply to cars with CO2 emissions above 50g/km.
  • First-year allowances for zero-emission goods vehicles and gas refuelling equipment are extended from 1 April 2018 to March/April 2021.
  • From 11 March 2020 the 100% allowance for ECAs in Enterprise Zones is extended until 31 March 2021.

Finance Act 2019

Finance Act 2019 included legislation to:

  • End ECAs from 1 April 2020 for companies and 6 April 2020 for unincorporated businesses.
  • Reduce the special writing down allowance rate from 8% to 6% from 1 April 2019 for companies and 6 April 2019 for unincorporated businesses.
  • Temporarily increase the AIA to £1million for two years from 1 January 2019.
  • Retain the FYA for electric charge points for a further four years, until April 2023.

  • Introduce a new Structures and Buildings Allowance for qualifying expenditure incurred on or after 29 October 2018. This will be at an annual rate of 2% on a straight line basis with no balancing adjustments on disposal.

  • Restrict expenditure on altering land for the installation of plant and machinery to where the plant and machinery itself qualfies for allowances. This will apply to claims on or after 29 October 2018.

Do you like our webservice? Join thousands of firms of accountants and Sign Up Now for FREE Nichola's SME tax-updates

tax dog


Do you need Virtual Tax Partner® support?

Paying too much tax? Need assistance in preparing your tax return? Advice on a tax efficient pay package? Create a family investment company?

Any other tax problem? Contact Virtual Tax Partner ® support.

Comments (1)

Rated 0 out of 5 based on 0 voters
This comment was minimized by the moderator on the site

is it confirmed that the ECA was withdrawn in April? What tax treatment would a Tesla electric vehicle get now?

Guest
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location