{"id":2396,"date":"2023-03-29T08:27:58","date_gmt":"2023-03-29T08:27:58","guid":{"rendered":"http:\/\/www.robbtax.co.uk\/blog\/?p=2396"},"modified":"2023-03-29T08:28:06","modified_gmt":"2023-03-29T08:28:06","slug":"capital-allowance-changes-for-plant-and-machinery-expenditure","status":"publish","type":"post","link":"https:\/\/www.robbtax.co.uk\/blog\/capital-allowance-changes-for-plant-and-machinery-expenditure\/","title":{"rendered":"Capital allowance \u2013 Changes for plant and machinery expenditure"},"content":{"rendered":"<p>Capital allowances are a form of tax relief for businesses. They allow you to subtract some or all of the value of an item from your profits before you pay tax.<\/p>\n<p><!--more--><\/p>\n<p>Capital Allowances can be claimed on a variety of:<\/p>\n<ul>\n<li>Machinery<\/li>\n<li>Equipment<\/li>\n<li>Business vehicles, such as vans, lorries or trucks<\/li>\n<\/ul>\n<p>These assets are commonly known as plant and machinery.<\/p>\n<p><strong>The new capital allowance measures for plant and machinery<\/strong><\/p>\n<p>From 1 April 2023 to 31 March 2026, the UK Government will implement a 100 per cent tax deduction for capital expenditure on plant and machinery.<\/p>\n<p>This effectively replaces the current 130 per cent super-deduction for capital allowances on qualifying plant and machinery assets.<\/p>\n<p>To encourage investment, the measures will temporarily increase the relief provided for capital spending on plant and machinery during the year the expenditure takes place.<\/p>\n<p>For qualifying expenditure, companies can claim:<\/p>\n<ul>\n<li>100 per cent first-year allowance for main rate expenditure, also known as full expensing<\/li>\n<li>50 per cent first-year allowance (FYA) for expenditure by companies on new special rate (including long life) assets<\/li>\n<\/ul>\n<p>The amount of funding that can qualify is uncapped, which means the more money that is invested, the more significant tax savings.<\/p>\n<p><strong>Annual Investment Allowance (AIA)<\/strong><\/p>\n<p>The UK Government is also making the increase to the limit for AIA from \u00a3200,000 to \u00a31,000,000 for qualifying expenditure on plant and machinery permanent from 1 April 2023.<\/p>\n<p>This allowance is available for all businesses, including unincorporated businesses and most partnerships.<\/p>\n<p>Capital allowances for plant and machinery play a significant role in promoting business growth and economic development.<\/p>\n<p>By providing tax relief on investments in plant and machinery assets, the Government is encouraging businesses to undertake new projects and update their operations.<\/p>\n<p><strong>Need advice on capital allowances for your business? Contact one of our experts today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital allowances are a form of tax relief for businesses. They allow you to subtract some or all of the value of an item from your profits before you pay tax.<\/p>\n","protected":false},"author":1,"featured_media":2398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,17,31,80,12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Capital allowance \u2013 Changes for plant and machinery expenditure - Accountants in Sutton Coldfield<\/title>\n<meta name=\"description\" content=\"Robb &amp; Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robbtax.co.uk\/blog\/capital-allowance-changes-for-plant-and-machinery-expenditure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capital allowance \u2013 Changes for plant and machinery expenditure\" \/>\n<meta property=\"og:description\" content=\"Capital allowances are a form of tax relief for businesses. 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