|Annual Investment Allowance (AIA)|
|Sole Trader /
|From the 1st January 2016||£200,000||£200,000|
|6th April 2014 - 31st December 2015||£500,000||-|
|1st April 2014 - 31st December 2015||-||£500,000|
|1st January 2013 - 5th April 2014||£250,000||-|
|1st January 2013 - 31st March 2014||-||£250,000|
|6th April 2012 - 31st December 2012||£25,000||-|
|1st April 2012 - 31st December 2012||-||£25,000|
|6th April 2010 - 5th April 2012||£100,000||-|
|1st April 2010 - 31st March 2012||-||£100,000|
|6th April 2008 - 5th April 2010||£50,000||-|
|1st April 2008 - 31st March 2010||-||£50,000|
|Plant and Machinery|
|Main writing down allowance rate||18%||18%|
|Special rate pool (long life assets and integral features within a building)||8%||8%|
|Enterprise Zone plant & machinery (max €125m per investment project)||100%||100%|
|Patent rights & know-how (annual reducing balance)||25%||25%|
|Energy and water-efficient equipment||100%||100%|
|Energy saving / environmentally beneficial assets||100%||100%|
|New or used cars with CO2 emissions of 50gm/km or less (non-electric)||100%||n/a|
|New or used cars with CO2 emissions of 75gm/km or less (non-electric)||n/a||100%|
|New or used cars with CO2 emissions between 50gm/km and 110gm/km||18%||n/a|
|New or used cars with CO2 emissions between 75gm/km and 130gm/km||n/a||18%|
|Second hand cars with CO2 emissions of 110gm/km or less or car is electric||18%||n/a|
|Second hand cars with CO2 emissions of 130gm/km or less or car is electric||n/a||18%|
|Emissions greater than 110gm/km||8%||n/a|
|Emissions greater than 130gm/km||n/a||8%|
|Other Asset Types|
|Commercial or Industrial Buildings in an Enterprise Zone||100%||100%|
|Business premises Renovation Allowance||n/a||100%|
|R&D and other product tax reliefs|
|R&D Tax Credits, small & medium sized business (SME) scheme||230.0%||230.0%|
|R&D SME Payable Credit||14.5%||14.5%|
|R&D SME Expenditure Credit||12.0%||11.0%|
|Film Tax Relief||25.0%||14.5%|
|High-end TV Tax Relief||25.0%||25.0%|
|Video Games Tax Relief||25.0%||25.0%|
|Open-ended Investment Companies and authorised Unit Trusts||20.0%||20.0%|
The meaning of Research & Development (R&D) for these purposes and for the Capital Research & Development Allowance is set out in the BEIS Guidelines issued on 5 March 2004.
Large Companies (i.e. those that are not SMEs) can make claims under the R&D Expenditure Credits (RDEC) regime. Under this regime, the benefit will be recorded as a taxable credit in operating profit and will be equal to 12% (2017-18 11%) of the qualifying expenditure.
Non-tax paying large companies can receive a cash payout equal to the net value of the credit, subject to a cap based on the PAYE/NIC paid over to HMRC in respect of staff costs included in the R&D claim, and being a going concern, at the time the claim is made.
Companies that are SMEs are entitled to an additional deduction of 130% of qualifying R&D expenditure. For non-tax paying SMEs a cash alternative of up to 33.35p for every pound of qualifying expenditure may be available depending on the current year tax losses.
A cap limits the total amount of SME R&D a company can claim on each project to €7.5million (euro) and a going concern requirement applies.
An SME for R&D purposes is a company which, together with certain related enterprises, meets the EU definitions but with higher limits such that it has fewer than 500 employees and either turnover not exceeding €100million (euro) or total assets not exceeding €86 million (euro).
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