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For expenditure incurred from 01/04/23 – 31/03/2026, limited companies can claim 100% capital allowances on qualifying plant and machinery.
There is a Full Expensing allowance of 100% on new plant and machinery that normally qualify for the 18% Main Rate WDA.
There is also a Full Expensing FYA of 50% on new plant and machinery that normally qualify for 6% WDA Special Rate.
To claim either allowance within Business Tax for a limited company:
In order to select the option to claim the allowances the following conditions must be met.
The asset type must be one of the following eligible types:
When they are both met, the option to claim Full Expensing 100% or the 50% FYA will become visible and enabled to select:
When selecting Qualifies for full expensing 50% FYA or 100% FYA, this can be left non-pooled or added to the General Pool. In both instances the asset will receive 50 or 100% full expensing based on the selection in the CTAP which will be printed in the Tax Computation and the Capital Allowances report.
The Addition field shows the Addition expenditure value.
The WDA/FYA shows the 100% Full expensing amount on the expenditure.
The Addition field shows the Addition expenditure value.
The WDA/FYA shows the 50% Full expensing amount on the expenditure.
In the General Pool column:
The new row Additions (FYA 100%) – Full Exp. shows the Addition expenditure value.
The new row FYA (100%) – Full Exp. shows the Super Deduction of 100% expenditure value.
In the Special rate pool column:
The new row Additions (FYA 50%) – Full Exp. shows the Addition expenditure value.
The new row FYA (50%) – Full Exp. shows the Full Expensing of 50% expenditure value.
When selecting Qualifies for Full Expensing 50% FYA, this can be left non-pooled or added to the Special Rate Pool as seen above. In both instances the asset will receive 50% FYA and the balancing 50% of the expenditure will be carried forward and receive 6% WDA in the following CTAP.
The 50% FYA will also be printed in the Tax Computation and the Capital Allowances report.
The Addition field shows the Addition expenditure value.
The WDA/FYA field shows the 50% FYA.
The WDV c/fwd is the balance of the Addition expenditure of 50% that will be eligible for 6% WDA in the following CTAP.
Applies at Special Rate is auto ticked as it is a SR asset.
In the Special Rate column:
The new field Additions (FYA 50%) – Full Exp. shows the Addition value.
The new field FYA (50%) – Full Exp. shows the SR allowance of 50%.
The Pool c/fwd has the balance of the Addition expenditure of 50% added to it, that will then be eligible for 6% WDA in the following CTAP.
When an addition has a Full Expensing 100% or 50% FYA claim, in the CTAP where the disposal occurs there will be a balancing charge to pay regardless of whether the asset was pooled or non pooled.
Disposals in same CTAP as Addition and disposal value greater than the addition value.
Disposals in same CTAP as Addition and disposal value less than the addition value.
Disposals in a later CTAP as Addition and disposal value greater than the addition value.
Disposals in a later CTAP as Addition and disposal value less than the addition value.
Disposals in same CTAP as Addition and disposal value greater than the addition value. The disposal value is restricted to cost and the WDV c/fwd is nil.
Disposals in same CTAP as Addition and disposal value less than the addition value.
Disposals in a later CTAP as Addition and disposal value greater than the addition value. The disposal value is restricted to cost and the WDV c/fwd is nil.
Disposals in a later CTAP as Addition and disposal value less than the addition value.
Disposals in same CTAP as Addition and disposal value greater than the addition value. The disposal value is restricted to cost and the WDV c/fwd is nil.
Disposals in same CTAP as Addition and disposal value less than the addition value.
Disposals in a later CTAP as Addition and disposal value greater than the addition value.
WDV B/Fw - this is the WDV C/Fwd from the previous year
Disposal - disposal Proceeds (from 'A – Maintain Assets') x 50% (restricted to cost)
Bal. Charge/Allowance - [(Disposal - WDV B/Fwd) + Disposal Proceeds x 50%)]
Disposals in a later CTAP as Addition and disposal value less than the addition value.
WDV B/Fwd - this is the WDV C/Fwd from the previous year
Disposal - disposal Proceeds (from 'A – Maintain Assets') x 50% (restricted to cost)
Bal. Charge/Allowance - [(Disposal - WDV B/Fwd) + Disposal Proceeds x 50%)]
