Call us on: 01245 326280

Capital Allowances

Plant and machinery

Period of expenditure From 1.1.2016 1.4.2014 to 31.12.15
Annual Investment Allowance (AIA) 100% £200,000 £500,000
Energy/water-efficient technologies 100% 100%
Writing down allowance - general pool 18% 18%
Writing down allowance - special rate pool 8% 8%

Notes

  1. Neither capital expenditure nor depreciation is generally allowed as an expense.
  2. The writing down allowance spreads the cost over several years, and is not related to the accounting depreciation.
  3. Transitional rules apply where a period of account straddles the change of the Annual Investment Allowance limit.
  4. Special rate pool includes long life assets, plant integral to buildings and thermal insulation.

Motor cars

CO2 emissions of vehicle 2015/16 2014/15
Up to 75g/km 100% 100%
75g/km - 95g/km 18% 100%
95g/km - 130g/km 18% 18%
Over 130g/km 8% 8%

Notes

  1. For the 100% allowance the car must be acquired new not second hand.
  2. The 8% allowance applies to cars with emissions over 160g/km which were purchased before April 2013.
  3. Unincorporated businesses: the allowance is reduced for private use of the car.