Written by Ray Coman
|Plant and machinery|
|Annual investment allowance||100%||100%||
|Super-deduction for investing in qualifying plant and machinery||130%|
|Long life assets and integral features||6%||6%||B|
|First year allowances||100%||100%||C|
|Cars: CO2 emissions (g/km)|
|50 or less||100%||100%|
|51 - 110||18%||18%||B|
|Structures and buildings||2%||2%||D|
A Maximum annual investment allowance £200,000 pa from 1 January 2022 (£1,000,000 pa for the year to 31 December 2021).
B Reducing balance
C Available for: research and development (no time limit); enterprise zone (assisted areas) until designated dates between 31 March 2020 and 16 March 2024; energy saving and environmentally beneficial (water efficient) technologies until 31 March 2020/5 April 2020; brand new low emission cars and gas refuelling stations until 31 March 2021; zero-emission goods vehicles until 31 March 2021/5 April 2021; and electric vehicle charge points until 31 March 2023/5 April 2023.
D Expenditure on non residential structures and buildings on construction contracts entered into on or after 29 October 2018.
Super-deduction and first year allowance
In addition to the annual investment allowance, there will be a super deduction of 130% for qualifying plant and machinery. This will include items such as computer and office furniture. However, it will exclude items such as charter boats and cars.
Certain assets are added to a special pool. The first year allowance on this pool will increase from 6% to 50% with effect from 1 April 2021.
Examples of special rate pool assets include:
- Feature integral to a building;
- Cars with higher CO2 emissions; and
- Assets with a life of over 25 years.