Plant and machinery - Annual Investment Allowance (AIA)
The AIA applies to expenditure incurred on or after 6 April 2010 (1 April 2010 for companies). The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long-life assets but not cars, of up to £100,000 p.a.
Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%. The £100,000 limit may need to be shared between certain businesses under common ownership.
Other plant and machinery allowances
The annual rate of allowance is 20% from 6 April 2010 (1 April 2010 for companies). A 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2010 (1 April 2010 for companies). Long life asset expenditure brought forward will obtain the 10% rate.
A temporary 40% first year allowance may be due for certain expenditure exceeding the AIA incurred in the 12 month period beginning on 6 April 2009 (1 April 2009 for companies). A 100% first year allowance may still be available on certain energy efficient plant and cars.