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

 

£500,000

£200,000

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.

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