Budget 2018: the chancellor has announced a reduction of rate of special writing down allowance for capital allowances affecting assets in the special rate pool.
From 1 April 2019, for Corporation Tax, and 6 April 2019 for Income Tax, the special rate pool writing down allowance will change from 8% to 6% per annum.
This will affect the allowances for assets such as:
- Long-life assets
- Integral features
- Cars with 110g/km emissions purchased on or after 1 April 2018
For periods spanning the change in rate, a hybrid writing down allowance rate will apply.
Ring-fenced trades will retain the 10% rate.
Useful links:
External link
HMRC: Reduction of rate of special writing down allowance for capital allowances
