What are capital allowances?November 18, 2021
What are capital allowances?
What can I claim capital allowances on?
Plant and machinery
|Lifts, escalators and moving walkways||Fitted kitchens|
|Space and water heating systems||Bathroom suites|
|Air-conditioning and air cooling systems||Fire alarms and CCTV systems|
|Hot and cold water systems (excl. toilet and kitchen facilities)|
|Electrical systems, incl. lights|
|External solar shading|
A few conditions
Capital allowance categories
Why are there different types of capital allowance?
Annual Investment Allowance (AIA)
First year allowances (FYA)
Writing down allowances
|Main||18%||Value of all 'plant and machinery' assets, excluding those that appear in the single asset or special rate pools|
|Single asset||18% or 6%, depending on the item|
Small pools allowance
|New and unused, CO2 emissions are 0g/km (or car is electric)||First year allowances|
|New and unused, CO2 emissions are between 1g/km and 50g/km||Main rate allowances|
|Second hand, CO2 emissions are between 1g/km and 50g/km (or car is electric)||Main rate allowances|
|New or second hand, CO2 emissions are above 50g/km||Special rate allowances|