Capital Allowances 2016/17
Plant and machinery
|Period of expenditure||From 1.1.2016||1.4.2014 to 31.12.15|
|Annual Investment Allowance||£200,000||£500,000|
|Writing down allowance – general pool||18%||18%|
|Writing down allowance – special rate pool||8%||8%|
- Neither capital expenditure nor depreciation is generally allowed as an expense.
- The writing down allowance spreads the cost over several years, and is not related to the accounting depreciation.
- Transitional rules apply where a period of account straddles the change of the Annual Investment Allowance limit.
- Special rate pool includes long life assets, plant integral to buildings and thermal insulation.
|CO2 emissions of vehicle (g/km)||1.4.2016||1.4.2015|
|Up to 75||100%||100%|
|Up to 130 (in general pool)||18% pa||18% pa|
|Above 130 (in special rate pool)||8% pa||8% pa|
- For the 100% allowance the car must be acquired new, not second hand.
- The 8% allowance applies to cars with emissions over 160g/km that were purchased before April 2013.
- Unincorporated businesses: the allowance is reduced for private use of the car.