What we've identified...
Annual Investment Allowance (AIA)
There appears to be no legislated changes in the Autumn 2024 budget.
The rate of AIA was increased to £1,000,000 on 1 January 2019 and has remained at this rate ever since.
This allowance allows both general pool and special rate pool allowances to be claimed at 100% in the year of expenditure.
Full Expensing (FE)
There appear to be no legislated changes in the Autumn 2024 budget.
Along similar lines to Annual Investment Allowance but with no upper limit, Full Expensing allows companies to deduct the 100% cost against profits in the tax return for the financial period of expenditure.
It is claimable in respect of expenditure qualifying as main/general pool only, examples of which are vans, lorries, laptops, IT equipment, sanitaryware, and office furniture. This can include desks and chairs.
50% First Year Allowance
There appears to be no legislated changes in the Autumn 2024 budget.
This allowance is for qualifying special rate expenditure and allows a claim of 50% of the expenditure in the year the spend was incurred.
Writing Down Allowance (WDA)
There appears to be no legislated changes in the Autumn 2024 budget.
Businesses can continue to claim writing down allowances for qualifying general/main pool and special rate pool at 18% and 6% respectively.
Structures and Buildings Allowance (SBA)
There appears to be no legislated changes in the Autumn 2024 budget.
SBA is claimable on qualifying expenditure on the purchase and construction of new commercial structures and buildings as well as any renovation costs to existing commercial buildings.
The Future of Capital Allowances
The government advises that it will provide businesses with greater clarity on what qualifies for capital allowances in future.
The government is also exploring the case of extending full expensing to assets bought for leasing and will consider making changes when conditions allow.
What does our Managing Director think?
Here’s what Chris thinks…
In respect specifically of Capital Allowances, it would appear the 2024 Autumn Budget was one of stability rather than change. We will of course be reviewing the detail, and we will update our network if changes are found.
Discuss the Autumn Budget 2024 with one of our Capital Allowance experts
Latest News
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5 December 2024What Are Qualifying Activities for Capital Allowances?
Capital allowances are a key tax relief available to businesses for qualifying activities. They allow businesses to deduct the cost of certain capital expenditures related to these activities from their taxable profits, reducing their overall tax burden. However, not all purchases or investments qualify.... -
3 December 2024How Do CARS Assess Capital Allowances?
At CARS, we assess capital allowances and offer businesses and property owners a significant opportunity to reduce their tax liabilities by deducting qualifying capital expenditures. Here at Capital Allowance Review Service (CARS), we provide a thorough process to optimise these claims. Our goal is to...
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