PLANT AND MACHINERY CAPITAL ALLOWANCES
DEFINITION OF PLANT AND MACHINERY CAPITAL ALLOWANCES
PLANT AND MACHINERY INCLUDE:
- Fixtures – bathroom suites, CCTV, fire alarms
- Business vehicles (such as vans and cars)
- Integral features – heating systems, water systems, electrical systems, air-conditioning in the business property
- The costs incurred for destroying and/or removing existing plant and machinery
- Building alterations to allow the installation of additional plant and machinery for the benefit of the business
WHAT IS NOT CATEGORISED AS PLANT AND MACHINERY
- Plant and Machinery Capital Allowances can only be claimed for assets owned by the company. Also excluded are:
- Any structural parts such as bridges, roads and docks surrounding the business property.
- Entry points such as doors, windows and shutters
- Gas and water mains supply
- Any purchases made for non-business or entertainment purposes
Businesses can Claim THREE TYPES OF PLANT AND MACHINERY CAPITAL ALLOWANCES
ANNUAL INVESTMENT ALLOWANCE (AIA)
WRITTEN-DOWN ALLOWANCES (WDAS)
Written-Down Allowances (WDAs) are available for businesses who have already claimed AIA and have exceeded the annual threshold, or if the asset in question does not qualify for AIA.
Written-Down Allowances have a flat rate and are split into three asset pools:
- Main Pool – flat rate of 18%. The main pool includes most plant and machinery.
- Special Rate Pool – flat rate of 8%. Can include long-life assets or higher emission cars
- Single Asset Pools – varying flat rate of 18% or 8% depending on the asset