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 |
2021-22 to |
2020-21 |
|
Full expensing |
100% main rate assets, 50% special rate assets |
- | - |
| Super-deduction (companies only) |
- |
130% main rate assets, 50% special rate assets, 100% ring fence trades |
- |
|
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% |
|
3% straight line |
3% straight line |
3% straight line |
|
|
Limit |
100% €125 million |
100% €125 million |
100% €125 million |
|
ECAs |
100% |
100% |
- |
|
ECAs |
100% |
- |
- |
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 |
|
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
