Tax Rates & Allowances
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Capital Allowances
| 2021/2022 | 2022/2023 | 2023/2024 | |
|---|---|---|---|
| Main rate pool: writing down allowance | 18% | 18% | 18% |
| Special rate pool (long life assets, integral features): writing down allowance | 6% | 6% | 6% |
| Annual Investment Allowance (AIA) cap: | £1,000,000 | £1,000,000 | £200,000 |
| Structures and Buildings Allowance | 3% | 3% | 3% |
In the year of purchase, expenditures within the AIA are eligible for a 100
percent allowance. Since January 1, 2019, the AIA ceiling has been set at £1,000,000. The
AIA limit will be reduced to £200,000 once again on April 1, 2023. The AIA cap is
apportioned based on the length of the accounting period if it is shorter or longer than 12
months.
The AIA gives businesses 100 percent tax savings in the year they buy equipment and fixtures
(cars and buildings are not included).
