Capital allowances

Published: 03 Apr 2014

 

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Rate of the annual investment allowance

 

 

 

From 1st January 2016 01/04/2014 to 31/12/2015
Annual investment allowance 100% 100%
Main rate on general pool 18% 18%
Special rate pool 8% 8%
Know-how and patents 25% 25%

 

 

Annual investment allowance limit

 

 

 

From 1st January 2016 01/04/2014 to 31/12/2015
Annual investment allowance £200,000 £500,000

 

 

The balance of capital expenditure which is not relieved by the annual investment allowance is not relieved by the AIA is added to the main pool and tax relief is provided at the above rates. The balance of certain expenditure, such as on features integral to a building, are added to a special rate pool.

 

Capital allowances for cars

 

 

 

2016-17 2015/16
CO2 emissions below 75 g/km 100% 100%
CO2 emissions between 75 g/km and 130 g/km 18% 18%
CO2 emissions over 130 g/km 8% 8%

 

 

The main pool rate applies to a car with CO2 emissions below 130 g/km, and the special rate applies to car with a higher CO2 emissions. Up to 31 March 2018, car with low emissions, such as those which are electrically propelled will qualify for 100% capital allowance.

 

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