Plant and machinery allowances

Three types of allowance are available for expenditure on plant and machinery:

1. •

   the annual investment allowance (AIA), which currently provides a 100% allowance for the first £1,000,000 of expenditure per year, see the Annual investment allowance (AIA) guidance note

2. •

   first year allowances (FYAs), which also provide a 100% allowance for expenditure, but restricted to particular types of plant and machinery this includes full-expensing on new plant and machinery by companies, see the First year allowances guidance note, and

3. •

   writing down allowances, which provide a percentage allowance of 18% or 6% per year (18% or 8% prior to April 2019)

There is also a temporary super-deduction of 130% and FYA of 50% on qualifying new plant and machinery acquired between 1 April 2021 and 31 March 2023. For more details, see the Super-deduction and special rate first year allowance guidance note.

In addition, balancing