Main Capital & Other Allowances
Plant and machinery and other capital expenditure
Annual Investment Allowance:
| from 01/01/2016 to 31/12/2018 | £200,000 |
| from 01/01/2019 | £1,000,000 |
| Enterprise zone plant & machinery | 100% |
| Plant & Machinery (reducing balance) pa | 18% |
| Patent rights & know-how (reducing balance) pa | 25% |
| Certain long-life assets, integral features of buildings (reducing balance) pa | 6%[1] |
| Energy & water-efficient equipment | 100% |
| Electric vans | 100% |
| Structures and buildings allowance (SBA)[2] | 100% |
| Research and Development Allowance (RDA)[3] | 100% |
Motor Cars
Corporation Tax – Expenditure on or after 01/04/2018
Income Tax – Expenditure on or after 06/04/2018
| CO2 emissions of g/km: | <50 or electrically propelled | 51-110 | >111 |
| Capital allowance | 100% first year | 18% reducing balance pa | 8% reducing balance pa1 |
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: | <75 | 76-130 | >131 |
| Capital allowance | 100% first year | 18% reducing balance pa | 8% reducing balance pa1 |
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: | <95 | 96-130 | >131 |
| Capital allowance | 100% first year | 18% reducing balance pa | 8% reducing balance pa1 |
[1] 8% until April 19, 6% from 1st April 2019 for companies and 6th April 2019 for individuals.
[2] From 29 October 2018, capital allowance at a 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 any 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.
Research & Development Tax Credits
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | Note | 2022/23 | Note | |
|---|---|---|---|---|---|---|---|---|
| SME enhanced deduction scheme | 130% | 130% | 130% | 130% | 130% | A | 130% | A |
| SME cash credit for R&D loss surrendered | 14.5% | 14.5% | 14.5% | 14.5% | 14.5% | 14.5% | ||
| Large company above the line scheme credit (RDEC) | 12% | 12% | 12% | 13% | 13% | B | 13% | B |
A - Additional (enhanced) tax deduction available for qualifying R&D expenditure. From 1 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 1 January 2018. The rate was 11% prior to the change.
Please contact us for further information.
