Capital allowances main rates

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

Type 2017/18 to 2018/19 2015/16 to 2016/17  2014/15 2013/14 2012/13 to 2014/15 2011/12 2010/11 2009/10
Enhanced capital allowances (ECA) (energy saving and environmentally beneficial plant and machinery) 100% 100% 100% 100% 100% 100% 100% 100%

First Year Allowance: Electric car charging points

100%

100% from 23 November 2016

           

Enterprise Zone

Limit

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

100%

€125 million

     
Business Property Renovation - (withdrawn from April 2017)  100%  100%  100% 100% 100% 100% 100%

Flat Conversion Allowance

-  -  -

 

-

100% 100% 100% 100%

Landlord's Energy Savings Allowance

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

£100,000 £100,000 £50,000
First year allowance (FYA) for expenditure not covered by ECA or AIA -  -  -  - - - - 40%
Writing down allowance (WDA) - general pool 18%  18%  18%  18% 18% 20% 20% 20%
WDA - integral features and long life assets 8%  8%  8%  8% 8% 10% 10% 10%
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% 100%

 

Motor cars

 

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 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%

 

Emissions thresholds will be reduced to 50g/km and 110g/km for expenditure on or after 1 April 2018.

Finance Bill 2019

Following an announcement at Budget 2018, it is proposed that Finance Bill 2019 will include 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.
  • Extend the first-year allowance (FYA) for electric charge points until 31 March 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 hundreds 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.