JWL Accountancy Ltd
JWL Accountancy Ltd
  • Home
  • Services
    • Accountancy
    • Probate
  • About us
    • Testimonials
    • Blog
  • Contact Us
  • Resources
    • Companies House forms
    • HMRC Forms
  • Cloud Login
    • Xero
    • Kashflow
    • Sage Online
    • Quickbooks
    • Freeagent
  • More
    • Home
    • Services
      • Accountancy
      • Probate
    • About us
      • Testimonials
      • Blog
    • Contact Us
    • Resources
      • Companies House forms
      • HMRC Forms
    • Cloud Login
      • Xero
      • Kashflow
      • Sage Online
      • Quickbooks
      • Freeagent

  • Home
  • Services
    • Accountancy
    • Probate
  • About us
    • Testimonials
    • Blog
  • Contact Us
  • Resources
    • Companies House forms
    • HMRC Forms
  • Cloud Login
    • Xero
    • Kashflow
    • Sage Online
    • Quickbooks
    • Freeagent

Capital Allowances

Plant & Machinery

Plant and machinery The cost of purchasing capital equipment in a business is not a revenue tax deductible expense. However, tax relief is available on certain capital expenditure in the form of capital allowances.  


Plant and machinery allowances may be available on items such as machines, equipment, furniture, certain fixtures in a building ('integral features'), computers, cars, vans and similar equipment used in a business.  


Plant and machinery allowances may be available to owners of commercial property which is let out to a business.  


The Annual Investment Allowances (AIA) gives a 100% write-off on most types of plant and machinery (but not cars) up to an annual limit.  


Writing down allowances (WDA) are given for expenditure for which AIA is not, or cannot be, claimed. 

AIA Limits

Other Plant & Machinery

Expenditure upon which AIA is not given/claimed will obtain relief through the 'Main rate pool' or the 'Special rate pool' rather than each item being dealt with separately.  


The annual rate of WDA is 18% in the 'Main rate pool' and 6% in the 'Special rate pool'.  


A 100% first year allowance (FYA) may be available on certain cars.  


Between 1 April 2021 and 31 March 2023, companies investing in qualifying new plant and machinery will benefit from a new FYA. A company will be allowed to claim a super-deduction of 130% on certain new plant and machinery investments that ordinarily qualify for the 18% WDA and a 50% FYA on most new plant and machinery investments that ordinarily qualify for the 6% WDA.

Plant and Machinery

Motor Cars

For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools.


To qualify for FYA, the car must be purchased new.


CO2 emissions of 0 are eligible to 100% FYA


CO2 emissions of less than 50 are eligible to main rate of capital allowances (18%)


CO2 emissions of more than 50 are eligible to special rate of capital allowances (6%)


Company Car
Chartered Accountant
Quickbooks
Quickbooks pro
Quickbooks book-keeping
Kashflow
  • Privacy Policy
  • Small Business Accountant

JWL Accountancy

Rugeley, Staffordshire

01889 597839

Copyright © 2023 JWL Accountancy Ltd - All Rights Reserved.

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

DeclineAccept