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Capital Allowances

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Capital Allowances

Plant and machinery and other capital expenditure Annual Investment Allowance
Annual Investment Allowance:
from 01/01/2016 to 31/12/2018£200,000
from 01/01/2019 to 31/12/2020£1,000,000
from 01/01/2021£200,000
Enterprise zone plant & machinery100%
Plant and machinery (reducing balance) pa18%
Patent rights and know-how (reducing balance) pa25%
Certain long-life assets, integral features of buildings (reducing balance) pa6% [1]
Electric vans100%
Structures and buildings (SBA)[2]100%
Structures and buildings (SBA)[2]100%
Research and development (RDA)[3]100%
Motor Cars
Corporation Tax – Expenditure on or after 01/04/2019
Income Tax – Expenditure on or after 06/04/2019
CO2 emissions of g/km:<50 or electrically propelled51 – 110>111
Capital Allowance100% first year18% reducing balance pa6% reducing balance pa
Corporation Tax – Expenditure on or after 01/04/2015 but before 31/03/2018
Income Tax – Expenditure on or after 06/04/2015 but before 05/04/2018
CO2 emissions of g/km:<7576 – 130>131
Capital Allowance100% first year18% reducing balance pa8% reducing balance pa
Corporation Tax – Expenditure on or after 01/04/2013 but before 31/03/2015
Income Tax – Expenditure on or after 06/04/2013 but before 05/04/2015
CO2 emissions of g/km:<9596 – 130>131
Capital Allowance100% first year18% reducing balance pa8% reducing balance pa

[1] 8% until 19th April, 6% from 1st April 2019 for companies and 6th April 2019 for individuals

[2] From 29th October 2018 Capital allowance rate of 2% will be available for new qualifying non-residential structures and buildings on a straight-line basis

[3] RDA is only due if the research and development (R&D) expenditure is related to the trade being carried on or about to be carried on. R&D related to a trade includes expenditure which may lead to or facilitate an extension of the trade; and medical research which has a special relation to the welfare of workers employed in that trade

2016/172017/182018/192019/202020/21A
SME enhanced deduction scheme130%130%130%130%130%
SME cash credit for R&D loss surrendered14.5%14.5%14.5%14.5%14.5%
Large company above the line scheme credit (RDEC)11%12%12%12%13%B

A – Additional (enhanced) tax deduction available for qualifying R&D expenditure. From 1st April 2016 the only scheme available to large companies is RDEC

B – Tax credit available on qualifying R&D expenditure. RDEC rate increased to 12% on qualifying expenditure incurred on or after 1st January 2018. the rate was 11% prior to this change.

Please contact us for further information.

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