Capital Allowances

Plant & Machinery – Annual Investment Allowances

The AIA allowance gives 100% relief on most types of plant & machinery brought in the year.

AIA limit

The rate of the AIA has changed radically over the years.

From 1 January 2021 £200,000

1 January 2019 £1,000,000

1 January 2016 £200,000

1/6 April 2014 £500,000

1 January 2013 £250,000

1/6 April 2012 £25,000

Plant & Machinery Pools

The standard rate of allowances for pooled assets is 18%.

An 6% rate applies to expenditure incurred on integral features and on long life assets.

100% first year allowance may be available on certain energy efficient plant and cars, including expenditure incurred on new and unused zero emission goods vehicles.

Cars

Motor cars

Cars purchased between from 1 April 2018/ 5 April 2018 if a sole trader or partnership
2018/19 to 2020/21

Type RATE

FYA for electric cars or if CO2 emissions are 50g/km or lower 100%

WDA if CO2 emissions are between 50g/km and 110g/km 18%

WDA (second-hand vehicles) if CO2 emissions are less than 110g/km 18%

WDA if CO2 emissions exceed 110g/km 6%

If you have any questions or would like further information please call on 01527 433111 or 0121 289 4433