Capital Allowances 2019/20
Plant and machinery allowances
|Annual Investment Allowance (AIA)|
|– expenditure 1.1.19 – 31.12.20||£1,000,000||100%|
|– expenditure pre 1.1.19||£200,000||100%|
|Writing down allowance – general pool (reducing balance)||18%|
|Writing down allowance – special rate pool (reducing balance)||6%|
- 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
|New cars only||Up to 50||100%|
|In general pool||Up to 110||18% pa|
|In special rate pool||above 110||6% pa|
- 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)||2%|
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.