Emergency Budget 22 June 2010: Capital allowances for plant and machinery for periods ending in April 2012 or thereafter
22nd June 2010
Writing-down allowances will be reduced:
- From 20% to 18% per year for expenditure allocated to the main pool; and
- From 10% to 8% per year for expenditure allocated to the special rate pool.
This will apply to chargeable periods ending on or after 1 April 2012 for businesses within the charge to corporation tax and on or after 6th April 2012 for businesses within the charge to income tax.
"Special rate" expenditure includes long-life assets, thermal insulation, integral features and expenditure incurred on or after 1 April 2009 on cars with CO2 emissions of more than 160 g/km.
At the same time the maximum amount of the annual investment allowance will be reduced to £25,000. 100% first-year relief is given for tax purposes on plant and machinery up to the limit of this allowance. The limit is currently £100,000 (increased from £50,000 in April 2010).
There will be a 100% first year allowance for business expenditure on new and unused zero-emission goods vehicles. This will apply to expenditure incurred for five years from 1st/6th April 2010.
