Capital allowances (CT600 trade)

The Capital allowances tab provides entry and calculation of capital allowances and balancing charges for a number of asset types. This screen is accessed via the Data Input tab within the tax return, as a tab within the trading profits section.

Capital allowances grid

The grid displays a summary of the various classes of capital allowance that are applicable for the current period.

The supported capital allowance types are:

  • Plant & machinery – Main pool

  • Plant & machinery – Special rate pool

  • Short life assets

  • Structures and Buildings Allowance

  • Research & Development Allowances (RDA)

  • Business Premises Renovation Allowance (BPRA)

  • Freeport Structures And Buildings Allowance

Depending upon the period dates some asset types may not be available. Where the period is not for a full 12 months the Capital Allowances will be assigned on a pro rata basis.

For each type of asset, the grid shows a summary with each asset type in its own column.

  1. To access the input area for an asset type, select Edit at the top of the column for that type.

Below the button, the following information is summarised for each asset type:

  • WDV B/Fwd - the tax written down value at the start of the accounting period.

  • Additions eligible for FYA - the sum of the expenditure in the period that is eligible for 100% First Year Allowances.

  • FYA @ 100% - the amount of 100% First Year Allowance claimed on the relevant expenditure.

  • Additions eligible for Freeports FYA - the sum of the expenditure qualifying for Freeport enhanced capital allowances on plant and machinery.

  • Freeport FYA @ 100% - sum of allowances claimed on plant and machinery within a Freeport site.

  • Additions eligible for Full expensing FYA - the sum of all qualifying expenditure incurred on plant and machinery between 1/4/2023 and 31/3/2026 inclusive.

  • FYA @ 100% / 50% - the total allowances claimed in respect of full expensing allowances within the main pool (100%) and special rate (50%).

  • Additions eligible for FYA - the sum of the expenditure qualifying for Super Deduction and Special Rate allowances for the period 1/4/2021 to 31/3/2023.

  • FYA 130%/50% – the total Super Deduction and special rate allowances being claimed on the relevant expenditure.

  • Additions eligible for AIA - the total expenditure in the period that is eligible for the Annual Investment Allowance. This may be more than the AIA limit for the year.

  • AIA - the Annual Investment Allowance claimed. The title for this row also shows the maximum amount of AIA that can be claimed in the period, assuming that the AIA limits are not shared with another business.

  • Other additions - the total expenditure in the period that is not eligible for First Year Allowances or Annual Investment Allowance.

  • Less: disposal proceeds - the value of all asset disposals in the accounting period.

  • Balancing (allowance) / charge - any balancing allowance or balancing charge that is applicable for the asset type.

  • Balancing charge on Super Deduction – the balancing charges calculated as arising on Super Deduction and special Rate expenditure.

  • Balancing charges on Full expensing - the balancing charges calculated on the disposal of assets on which first year allowances were claimed under the Full expensing regime.

  • Residue - the residue of expenditure after adding the written down value and additions, and after deducting FYA and AIA claimed and disposal proceeds. This is the amount on which writing down allowances can be claimed.

  • Small pools WDA - for asset pools this line will indicate the writing down of the remaining pool balance where the balance of the pool is less than the small pools limit for the period.

  • WDA - the maximum writing down allowance that can be claimed in the period. The rates for writing down allowance will be different for different types of asset.

  • WDA not claimed - the total writing down allowance not actually claimed for the asset. This figure will reduce the WDA claim and increase the written down value carried forward.

  • Transfer in/(out) - for plant and machinery pools, the value of any assets transferred into or out of the pool at the end of the period.

  • WDV C/Fwd - the written down value of the assets to be carried forward to the next accounting period.

  • Allowances claimed - the sum of all allowances claimed for each type of asset; this includes First Year Allowance, Annual Investment Allowance, Balancing allowances/(charges) and WDA claimed.

Private use is not applicable for companies. Private use must be accounted for as a Benefit in Kind for the employee or director.