Capital allowances computationsPlant and machinery allowancesThree types of allowance are available for expenditure on plant and machinery:•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•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•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 allowances and balancing charges may arise in some circumstances where assets are disposed of or the business ceases.To compute writing down allowances, balancing allowances and balancing charges, expenditure is ‘pooled’. The different types of pools are:•the main rate or general pool ― includes most types of plant and machinery where not included in other pools•special rate pool ― mainly integral features, see the Special rate pool and long life assets guidance note•single asset pools when there has been a short-life asset election, see the Short-life assets guidance note•single asset pools when assets are used by unincorporated businesses both for
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