Key Changes to Capital Allowances are:
- Structures and Buildings Allowance (SBA)
SBA was introduced on 29 October 2018 will be increased from 2% to 3% per annum from 1 April 2020 (companies) and 6 April 2020 (individuals and partnerships). The increased allowance will become available from April 2020 on all qualifying expenditure from 29 October 2018. There are some transitional measures for businesses using the current scheme as the relief will be calculated over 33 and third years instead of 50 years, which is expected to have a positive impact on businesses.
- Enhanced Capital Allowances (ECAs)
ECA’s 100% first-year allowance for investment in new plant and machinery within designated assisted areas of Enterprise Zones will remain available for a year longer than planned on expenditure incurred until at least 31 March 2021.
- Annual Investment Allowance (AIA)
AIA had a temporary increase to £1 million per annum which comes to an end and reverts back to £200,000 from 1 January 2021. Businesses need to ensure that qualifying expenditure is brought into account by 31 December 2020 and paid for by 30 April 2021.
If you would like to speak to an expert about any of these changes, please get in touch.
5 December 2023
Capital Allowances ManualCapital allowances play a significant role in taxation. Allowing businesses to claim deductions for the depreciation of their assets. Among these assets, plant and machinery are frequently mentioned. However, the term “plant and machinery” is not explicitly defined in tax law. It should also...
22 November 2023
Autumn Budget 2023: Changes to Capital AllowancesThe Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.