{"id":5077,"date":"2023-03-29T08:27:58","date_gmt":"2023-03-29T08:27:58","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5077"},"modified":"2023-03-29T08:27:59","modified_gmt":"2023-03-29T08:27:59","slug":"capital-allowance-changes-for-plant-and-machinery-expenditure","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.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":2,"featured_media":5079,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,31,60,121,25],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5077"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5077"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5077\/revisions"}],"predecessor-version":[{"id":5078,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5077\/revisions\/5078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5079"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}