Capital Allowances
Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and
machinery costs, including integral features and long life assets but
not cars, of up to £25,000 p.a. (£100,000 for expenditure incurred
before 6 April 2012 (1 April 2012 for companies). Special rules apply
for accounting periods straddling these dates.)
Any costs over the AIA fall into the normal capital allowance
pools below. The AIA may need to be shared between certain businesses
under common ownership.
Other plant and machinery allowances
The annual rate of allowance is 18% (20%) from 6 April 2012 (1
April 2012 for companies). An 8% (10%) rate applies from 6 April 2012 (1
April 2012 for companies) to expenditure incurred on integral features
and on long life assets. Special rules apply to accounting periods
straddling these dates.
A 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 on or after 6 April 2010 (1 April
2010 for companies).
Cars
For expenditure incurred on cars on or after 6 April 2009 (1
April 2009 for companies), costs are generally allocated to one of the
two plant and machinery pools. Cars with CO2 emissions not exceeding 160gm/km receive an 18% (20%)
allowance p.a. Cars with CO2 emissions over 160gm/km
receive an 8% (10%) allowance p.a. Special rules apply to accounting
periods straddling 6 April 2012 (1 April 2012 for companies).
Disclaimer
The information in this tax card is based upon the 2011 Budget
and earlier announcements and may be subject to amendment by the Finance
Act.