This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Capital allowances: What’s new?

Shared from Tax Insider: Capital allowances: What’s new?
By Chris Thorpe, May 2024

Chris Thorpe looks at where we are with capital allowances. 

Accounts depreciation is not allowed within tax calculations; it’s too subjective, so instead of that capital allowances generally apply for tax purposes. These allowances have been in place for ‘wear and tear’ to plant and machinery since 1878, with a factory and mills allowance allowing for economic depreciation within a trading business.  

HMRC provides a useful history in its Capital Allowances Manual at CA10040. The current legislation is contained within the Capital Allowances Act (CAA) 2001. 

What are they exactly? 

Allowances themselves are given through a ‘written-down allowance’, which is 18% of the cost and subsequent written-down value of assets in a ‘general pool’ and 6% in a ‘special rate’ pool (which contains cars with CO2 emission of

This is one of our 2599 Premium articles

To see this article in full and unlock access to our complete library of 2599 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee