Main Capital And Other Allowances

Plant and machinery and other capital expenditure

Annual Investment Allowance

from 1/4/14 to 31/12/15

from 1/1/16




Enterprise zone plant & machinery 100%
Plant & Machinery (reducing balance) pa 18%
Patent rights & know-how (reducing balance) pa 25%
Certain long-life assets, integral features of buildings (reducing balance) pa 8%
Energy & water-efficient equipment 100%
Electric vans 100%
Business premises renovation* 100%

Motor Cars

Expenditure on or after 1/4/15 (Corporation Tax) or 6/4/15 (Income Tax)
CO2 emissions of g/km: 75 or less 76-130 131 or more
Capital allowance 100% first year 18% reducing balance pa 8% reducing balance pa



Expenditure on or after 1/4/13 (Corporation Tax) or 6/4/13 (Income Tax)

But before 31/5/15 or 5/4/15

CO2 emissions of g/km: 95 or less 96-130 131 or more
Capital allowance 100% first year 18% reducing balance pa 8% reducing balance pa

 Research & Development Tax Credits 

  2015/16 2016/17 2017/18 Note
SME enhanced deduction scheme 130% 130% 130% A
SME cash credit for R&D loss surrendered 14.5% 14.5% 14.5%  
Large company enhanced deduction scheme 30% N/A N/A A
Large company above the line scheme credit (RDEC) 11% 11% 11% B*

Additional (enhanced) tax deduction available for qualifying R&D expenditure.  From 1 April 2016, the only scheme available to large companies is RDEC.

B Taxable credit available on qualifying R&D expenditure. 

B* - With effect from 1 January 2018, the RDEC rate will increase to 12% on qualifying expenditure on costs incurred after this date.

Please contact us for further information.

Disclaimer: This App and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this App is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and the authors accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this App.