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Capital Allowances
Tax Tables
Capital Allowances
Capital allowances main rates |
2026/27 |
1-Jan-26 to 31-Mar-26 |
1-Apr-25 to 31-Dec-25 |
2024/25 |
| Plant and machinery: main rate expenditure | 14% | 18% | 18% | 18% |
| Plant and machinery: special rate expenditure | 6% | 6% | 6% | 6% |
| Structures and building allowance (SBA) | 3% | 3% | 3% | 3% |
| Annual investment allowance (AIA) | £1,000,000 | £1,000,000 | £1,000,000 | £1,000,000 |
| Enhanced capital allowances in freeports | 100% | 100% | 100% | 100% |
| Enhanced capital allowances in investment zones | 100% | 100% | 100% | 100% |
| Enhanced structures and buildings allowance in freeports | 10% | 10% | 10% | 10% |
| Enhanced structures and buildings allowance in investment zones | 10% | 10% | 10% | 10% |
| Special rate first year allowance | 50% | 50% | 50% | 50% |
| Full expensing: first year allowance (companies only) | 100% | 100% | 100% | 100% |
| Main rate first year allowance | 40% | 40% | N/A | N/A |
Motor vehicle capital allowances guide by vehicle type |
CO2 (g/km) |
Allowance |
| New electric purchased by a company | N/A | Full expensing |
| New electric purchased by a proprietorship | N/A | Annual Investment |
| Used electric | N/A | Main rate |
| New non-electric purchased by a company | 0 | Full expensing |
| New non-electric purchased by a proprietorship | 0 | Annual Investment |
| Used non-electric | 0 | Main rate |
| Non-electric | 1-50 | Main rate |
| Non-electric | 51 + | Special rate |
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