Capital allowances changes

A number of changes to capital allowances were announced at the Budget.

Call 028 90 381755 or email info@bmkca.com

A number of changes to capital allowances were announced at the Budget, including an increase in the Annual Investment Allowance (AIA), for two years to £1 million, in relation to qualifying expenditure incurred from 1 January 2019. The AIA is currently £200,000 per annum. Complex calculations may apply to accounting periods which straddle 1 January 2019.

Other changes to the rules include:

  • a reduction in the rate of writing down allowance on the special rate pool of plant and machinery, including long-life assets, thermal insulation, integral features and expenditure on cars with CO2 emissions of more than 110g/km, from 8% to 6% from April 2019. Complex calculations may apply to accounting periods which straddle this date
  • clarification as to precisely which costs of altering land for the purposes of installing qualifying plant or machinery qualify for capital allowances, for claims on or after 29 October 2018
  • the end of the 100% first year allowance and first year tax credits for products on the Energy Technology List and Water Technology List from April 2020
  • an extension of the current 100% first year allowance for expenditure incurred on electric charge-point equipment until 2023.

In addition, a new capital allowances regime will be introduced for structures and buildings. It will be known as the Structures and Buildings Allowance and will apply to new non-residential structures and buildings. Relief will be provided on eligible construction costs incurred on or after 29 October 2018, at an annual rate of 2% on a straight-line basis.

Internet link: GOV.UK Budget 2018

About our team

As well as general accountancy, audit and tax skills, we also have individual specialist skills which enable us to provide clients with a first class service as and when required. With our wealth of experience we pride ourselves on delivering an unparalleled service to all clients, what ever their size or sector.

Learn more

Contact Details

Please call:
028 90 381755

BMK Chartered Accountants, 43 Lockview Road, Belfast, Northern Ireland BT9 5FJ

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2018 BMK Chartered Accountants. All rights reserved. powered by totalSOLUTION

Director: Brian McKee, ACA
T Murphy & Co is the trading name of BMK Accounting Limited (Co. No. NI632272)
Registered Office : BMK Chartered Accountants, 43 Lockview Road, Belfast, Northern Ireland BT9 5FJ
We use cookies on this website, you can find more information about cookies here.