Capital allowances
Based on CO2 emissions
The table below shows the WDA allowance as a percentage based on the official CO2 g/km figure for the vehicle in the pool
| 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 | |
|---|---|---|---|---|---|
| 100% First year allowance | 2021/220 or below | 2022/230 or below | 2023/240 or below | 2024/250 or below | 2025/260 or below |
| 18% WDA - Main pool | 2021/221 to 50 | 2022/231 to 50 | 2023/241 to 50 | 2024/251 to 50 | 2025/261 to 50 |
| 6% WDA - Special pool | 2021/22Above 50 | 2022/23Above 50 | 2023/24Above 50 | 2024/25Above 50 | 2025/26Above 50 |
For corporation tax purposes the thresholds above apply to cars purchased on or after 1st April whereas for income tax purposes new tax years start on 6th April.
Finance Bill 2018-19 reduces the special pool rate from 8% to 6%
Electric charge-points are eligible for 100% FYAs until April 2023 (Finance Bill 2018-19)
Capital allowances for vans
A van with zero CO2 emissions is eligible for a 100% first year allowance if purchased before April 2021.
Any other van should be treated as plant and machinery and allocated to the main pool, where it will be eligible for writing down allowances at 18%.
Annual Investment Allowance
The Annual Investment Allowance of £200,000 will increase to £1,000,000 for expenditure in the period 1st January 2019 to 31st December 2020 (Finance Bill 2018-19). This measure has been extended for twelve months to 31st December 2021.
Where qualifying expenditure exceeds the annual cap, tax relief will be given under the normal capital allowance regime via the main or special rate pools, with writing down allowances being given at the appropriate rates.