Capital allowances: Rates and allowances

What different types of capital allowances are available? What are the current and past rates of allowances?

This is a freeview 'At a glance' guide to capital allowances: rates and allowances. 

Capital allowances should be considered in business planning when an existing business has plant and machinery or other assets.

Capital allowances' main rates

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

Expenditure on plant and machinery, and structures and buildings.

Type

2023-24 to
2025-26

2021-22 to
2022-23

2020-21

Full expensing 
(companies only)

100% main rate assets, 50% special rate assets

 - -
Super-deduction
(companies only)		 -

130% main rate assets, 50% special rate assets, 100% ring fence trades

 -

Annual Investment Allowance (AIA)

100% (£1 million limit)

100% (£1 million limit)

100% (£1 million limit)

Writing-down allowance (WDA): general pool

18%

18%

18%

WDA special rate pool: including Integral features and Long life assets

6%

6%

6%

Small pool WDA where pool is £1,000 or less

100%

100%

100%

First Year Allowance (FYA): Electric car charging points

100%

100%

100%

Structures and Buildings Allowance (SBA)

3% straight line

3% straight line

3% straight line

Enterprise Zone

Limit

100%

€125 million

100%

€125 million

100%

€125 million

Freeports

ECAs 
SBAs

 

100%
10%

 

100%
10%

 

-
-

Investment Zones

ECAs 
SBAs

 

100%
10%

 

-
-

 

-
-

Motor cars 

 Cars purchased from 1/5 April 2018

(includes cars used by sole traders or partnerships with private use in a single asset pool)

 2021-22 
to
2025-26 		 2018-19
to
2020-21 

 Type

Rate

Rate 

 FYA for new electric cars or new zero-emission

100%

100%

 FYA if CO2 emissions are 50g/km or lower (new cars only)

N/A

100% 

 WDA if CO2 emissions are 50g/km or lower (includes FYA qualifying cars if FYA not claimed)

18%

18% 

 WDA if CO2 emissions are between 50g/km and 110g/km

6%

18%

 WDA if CO2 emissions exceed 110g/km

6%

6%

 

 Purchased between April 2015 and April 2018

2015-16 to
2017-18 

Type

 Rate

FYA for new electric cars or if CO2 emissions are 75g/km or lower (new cars only)

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 130g/km

8% 

See Vehicles (4 wheels): Allowances