Plant & Machinery - Annual
The AIA allowance
gives 100% relief on most types of plant & machinery
brought in the year up to £500'000 PA for expenditure
incurred on or after 6th April 2014. (1 April
2014 for companies). The rate may be reduced to
£25,000 for expenditure incurred on or after 1st January
2016. Special rules apply to accounting
periods straddling these dates. Any costs over the AIA
fall into the normal capital allowance pools below.
The AIA may need to be shared between businesses under
Plant & Machinery Pools
The standard rate of allowances for pooled assets is 18%.
An 8% rate applies to expenditure incurred on integral
features and on long life assets.
100% first year allowance may be available on certain energy
efficient plant and cars, including expenditure incurred on new
and unused zero emission goods vehicles.
For expenditure incurred on cars, cost are generally
allocated to one of the two plant and machinery pools.
Capital allowances available on cars is now linked to the
level of Co2 emissions the car emits. From 6 April 2013 (1 April
2013 for companies) Cars with Co2 emissions not exceeding
130gm/km (previously 160gm/km) receive an 18% allowance p.a.
Cars with Co2 emissions over 130gm/km (previously 160gm/km)
receive a 8% allowance pa.