Capital Allowances 2019/20 - Cutter & Co Chartered Accountants

Plant and machinery allowances

		Rate
Annual Investment Allowance (AIA)
– expenditure 1.1.19 – 31.12.20	£1,000,000	100%
– expenditure pre 1.1.19	£200,000	100%
Energy/water-efficient equipment		100%
Writing down allowance – general pool (reducing balance)		18%
Writing down allowance – special rate pool (reducing balance)		6%

Notes

Neither capital expenditure nor depreciation is generally allowed as an expense.
The writing down allowance (WDA) spreads the cost over several years, and is not related to the accounting depreciation.
Special rate pool includes long life assets, plant integral to buildings and thermal insulation. The WDA on this pool was 8% pa prior to 1 April 2019 (companies) and 6 April 2019 (unincorporated businesses and LLPs). A time-apportioned rate of WDA is calculated for accounting periods straddling the change date.

Motor cars purchased

	From 1.4.18	Allowance
	CO2 (g/km)
New cars only	Up to 50	100%
In general pool	Up to 110	18% pa
In special rate pool	above 110	6% pa

Notes

The WDA on the special rate pool was 8% pa prior to 1 April 2019 (companies) and 6 April 2019 (unincorporated businesses and LLPs).
Unincorporated businesses: the allowance is reduced for private use of the car.

Structures and buildings allowances (SBA)

Expenditure from 29.10.18 (straight line basis)

Notes

The SBA is available on commercial buildings and structures used for a qualifying purpose. It is not available on residences, nor on the cost of land itself.