Tel: 01223 354233
Partners
Stuart Berriman (FCCA, ACA)
Paul Chubbock (FCCA)
Graham Day (FCA, DChA)
Ian McGraw (Dip, PFS)
Capital Allowances
| 2019/2020 | 2020/2021 | |
| Main rate pool: writing down allowance |
18% | 18% |
| Special rate pool (long life assets, integral features): writing down allowance | 6% | 6% |
| Annual Investment Allowance (AIA) cap: | £1,000,000 | £1,000,000 |
| Structures and Buildings Allowance | 2% | 2% |
Expenditure within the AIA qualifies for 100% allowance in the year of purchase. The AIA cap is currently £1,000,000 from the 1st January 2019 for two years. On the 1st of January 2021 the AIA limit is expected to be reduced to £200,000 again. If the accounting period is shorter or longer than 12-months the AIA cap is apportioned based on the length of the period.
The AIA allows businesses to invest in equipment and fixtures (cars and buildings don't qualify), with 100% tax relief in the year of purchase.
