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	2021/22	2020/21	2019/20	2017/18 to 2018/19	2015/16 to 2016/17
Super deduction *	130%/50%/100%	-	-	-	-
Annual Investment Allowance (AIA)  Limit:	100%   £1 million  From 1 Jan 22: £200,000	100%     £1 million	100%   £1 million	100%     £200,000	100%   2015/16:£500,000 2016/17:£200,000
Writing-down allowance (WDA): general pool	18%	18%	18%	18%	18%
WDA: Integral features and Long life assets	6%	6%	6%	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%
First Year Allowance (FYA): Electric car charging points	100%	100%	100%	100%	100% from 23 November 2016
Structures and Buildings Allowance (SBA)	3% straight line	3% straight line	2% straight line	From 29/10/18 2% straight line	-
Enterprise Zone Limit	100% €125 million	100% €125 million	100% €125 million	100% €125 million	100% €125 million
Enhanced Capital Allowances (ECA) (energy-saving and environmentally beneficial plant and machinery)	-100% ECAs in Enterprise Zones until 31/3/21 at least.	Withdrawn except in respect of Enterprise Zones	100%	100%	100%
Business Property Renovation	-	-	-	(withdrawn from April 2017)	100%
Freeports (new designated sites): ECAs  SBAs Super Deduction* & AIA	100% 10% If within expenditure limits

* The Super Deduction is available only to companies at a rate of 130% for main rate assets, 50% for special rate assets (i.e. Fixtures and Integral Features , or 100% for assets used partly for ring-fenced trades and partly for qualifying trades (on apportionment). The Super Deduction is available for qualifying expenditure incurred between 1 April 2021 and 31 March 2023.

Motor cars 

Cars purchased from 1 April 2018/ 5 April 2018  (includes cars used by sole traders or partnerships with private use in a single asset pool)	2021/22  to 2024/25	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 (not zero)	18%	n/a
WDA if CO2 emissions are between 50g/km and 110g/km	6%	18%
WDA (second-hand vehicles) if CO2 emissions are less than 110g/km	6%	18%
WDA if CO2 emissions exceed 110g/km	6%	6%

Motor cars 

Purchased between April 2015 and April 2018	2015/16 to 2017/18
Type	Rate
FYA for electric cars or if CO2 emissions are 75g/km or lower	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

Finance Act 2021

• In an attempt to kick-start the economy post-COVID, the government announced a new Super-deduction allowance for plant & machinery. New qualifying expenditure by companies, incurred between 1 April 2021 and 31 March 2023, will receive an enhanced 130% first year allowance.
• A 50% First Year Allowance is also introduced. 
  • See Super-deduction & First Year Allowances
• Finance Act 2021 introduces a short-term measure to prevent leases, where extended due to COVID-19, from inadvertently becoming long funding leases and falling foul of the anti-avoidances measures included in the Capital Allowances Act 2001. 
  • See: Plant & Machinery: Allowances
• A 100% Enhanced Capital Allowance for Freeports is to be introduced, as well as a 10% Structures and Buildings Allowance. These coincide with the announcement of the eight new Freeport sites across England (and potentially further sites across the rest of the UK).
  • See Freeports: tax breaks.