Plant and machinery - main pool

This section allows input and calculation of capital allowances for the plant and machinery main pool.

It consists of four tabs:

  • Calculation – enter Additions and disposals as total amounts.

  • Asset movements – can be used to input details of purchases and disposals.

  • Super deduction assets – enter details of asset additions and disposals.

  • Freeport FYA assets – enter details of expenditure incurred in respect of plant and machinery within a Freeport Tax Site.

  • Full expensing FYA assets – enter details of expenditure incurred in respect of plant and machinery on which first year allowances are being claimed under the Full expensing regulations.

Select Save changes to save your changes and return to the Capital allowances summary tab. Switching between the Calculation, Asset movements, Super deduction assets, Freeport FYA assets and Full expensing FYA assets tabs will automatically save any changes made in the screen.

Calculation

This tab shows the input fields and calculation fields for the main pool allowances.

Where a claim to Super Deduction allowances has been made all additions and disposals have to be entered into Asset movements tab to be able to claim the required allowances.

Plant and machinery main pool

  • Written down value b/fwd – enter the written down value of the pool brought forward from the previous period. If the information was rolled forward from a previous period then the written down value will already be populated.

First year allowances

  • Additions eligible for FYA – if you have used the Asset movements tab to enter the purchases in the period, then this field will show the total expenditure that is eligible for First Year Allowances. If you have not entered any asset movements then you can manually enter a figure of eligible expenditure. First Year Allowances of 100% are available for expenditure on certain energy-saving and water efficient equipment, new cars with very low carbon dioxide emissions, certain vehicle gas refuelling equipment, zero emission goods vehicles and plant and machinery for use in certain enterprise zones. See HMRC guide.

  • FYA not claimed – if you do not wish all of the expenditure eligible for the 100% First Year Allowance to be claimed for any reason, input the amount not to be claimed. This expenditure will instead become eligible for writing down allowance.

  • 100% FYA claimed – Taxfiler by IRIS will display the amount of First Year Allowance claimed in the period.

Freeport First Year Allowances

  • Additions eligible for FYA – this field will show the expenditure on which the 100% First Year allowances being claimed on plant and machinery expenditure within a Freeport tax site. To make a claim create the associated asset using the Freeport FYA assets tab.

  • 100% FYA claimed – Taxfiler by IRIS will display the amount of First Year Allowance claimed in the period.

Super Deduction Allowances

For more information see HMRC guide

and The Finance Act 2021

The super deduction allowance at the rate of 130% applies to expenditure incurred between 1/4/2021 until 31/3/2023. This section on the calculation tab will only be shown where the return period covers the period on which allowances can be claimed and where assets on which a super deduction was previously claimed has not been disposed.

  • Additions eligible for Super Deduction – this field will show the expenditure on which the 130% Super Deduction is being claimed. To make a claim enter the expenditure incurred into the grid on the Super deduction assets tab.

  • 130% allowances claimed – Taxfiler by IRIS will automatically calculate the appropriate allowances available on the expenditure incurred.

The rate of the allowances available is different where the asset is purchased in a return period that straddles 31/03/2023. Instead of 130% a factor is calculated as follows:

  1. Number of days before 1/4/2023 / total number of days in the period

  2. Multiply (a) by 0.3

  3. Add 1

The factor is then applied to the cost of the expenditure.

Full Expensing FYA

The Full expensing regulations brought in by the Budget 2023 allows claims to First year allowances on qualifying expenditure incurred on plant and machinery between 01/04/2023 and 31/03/2026.

This section on the calculation tab will only be shown where the return period covers the period on which allowances can be claimed and where assets on which a first year allowance was previously claimed has not been disposed.

  • Additions eligible for Full expensing FYA – this field will show the expenditure on which the 1o0% first year allowances are being claimed. To make a claim enter the expenditure incurred into the grid on the Full expensing FYA assets tab.

  • 100% allowances claimed – Taxfiler will automatically calculate the appropriate allowances available on the expenditure incurred.

AIA

  • Additions eligible for AIA – if you have used the Asset movements tab to enter the purchases in the period, then this field will show the total expenditure that is eligible for Annual Investment Allowance. If you have not entered any asset movements then you can manually enter a figure of eligible expenditure.

  • AIA claimed – input the amount of Annual Investment Allowance actually claimed. The AIA limits panel on the right-hand side of the page shows the maximum AIA that can be claimed in the period for all asset types (assuming that the business is not sharing the AIA limit with another entity).

Other additions and disposals

  • Additions not eligible for FYA or AIA – if you have used the Asset movements tab to enter the purchases in the period, then this field will show the expenditure that is not eligible for First Year Allowance or for Annual Investment Allowance. If you have not entered any asset movements then you can manually enter a figure for the remaining expenditure.

  • Additions eligible for FYA but not claimed – this field will show the expenditure which is eligible for FYA but which has not been claimed (from the FYA not claimed field above).

  • Additions in excess of AIA limit – this field shows the expenditure which is eligible for AIA but for which AIA has not been claimed (the difference between the Additions eligible for AIA and AIA claimed fields).

  • Less: disposal proceeds – if you have used the Asset movements tab to enter the disposals in the period, then this field will show the total disposal proceeds from the pool. If you have not entered any asset movements then you can manually enter the total disposals.

  • Balancing allowance/(charge) – this field will show any calculated balancing allowance or balancing charge for the period. A balancing allowance will only arise on the pool when the business or qualifying activity is ceasing.

  • Balancing charge on Super Deduction expenditure – a balancing charge arises on the disposal of an asset on which Super Deduction allowances were previously claimed. Taxfiler by IRIS will automatically calculate the appropriate amount based upon the date of disposal and disposal proceeds entered on the Super Deduction assets tab. For information the balancing charge is calculated using a rate applied to the disposal proceeds as follows:

    • Periods that end before 1/4/2023 – 130%

    • Periods starting on or after 1/4/2023 – 100%

    • Period that straddles 31/3/2023 the same factor as for additions (see above) is applied.

  • Balancing charge on Full expensing FYA – a balancing charge arises on the disposal of an asset on which first year allowances were previously claimed. Taxfiler will automatically calculate the appropriate amount.

  • Net balancing allowance/(charge) – this field is the sum of the Balancing allowance/(charge) plus Balancing charge on Super Deduction expenditure.

Writing down allowance

  • Residue – this field will show the balance that is eligible for writing down allowances. This is calculated from the written down value brought forward, plus additional expenditure, minus any disposals, AIA and FYA claimed.

  • Small pools WDA (max £ 1 000) – where the residue in the pool is less than the Small Pools Allowance limit for the period then the entire pool can be written down and this field will show the value of the pool to be written down. If the accounting period is longer or shorter than 12 months then the limit will be adjusted accordingly.

  • WDA @18% – this field will show the writing down allowance claimed on the remaining pool balance. Where the period straddles a rate change the rate will be adjusted accordingly.

  • WDA not claimed – if you wish to disclaim any writing down allowances, input the amount not claimed. This will remain in the pool to be relieved in a future period.

Carry forward

  • Short life assets transferred to pool – input the value of any short life assets transferred into the pool at the end of the period.

  • Written down value c/fwd – this field will show the pool residue to be carried forward to the next period. When the tax return for the next period is created, this balance will be brought forward into the new period.

Zero-emission goods vehicle allowance

This amount must also be included in the FYA claimed.

  • FYA applicable to zero-emissions goods vehicles

AIA limits

This section shows the maximum AIA that can be claimed in this period.

If you have used the Asset movements tab to enter the expenditure in the period then this area will show all the expenditure in the period that is applicable for AIA. Where possible a suggested allocation will also be shown. This allocation assumes that 100% FYA is claimed for all assets that are eligible, and then prioritises expenditure that would otherwise only attract the lower special rate of writing down allowances.

If you wish to apply the suggested AIA allocation across all asset types, select Apply suggested AIA allocation. (If the option is not shown then the suggested AIA allocation has already been applied).

Green expenditure, allowances and disposals

  • Environmentally Friendly expenditure – enter the amount of expenditure incurred on environmentally friendly assets. This value can be seen in Box 765 of the CT600. Any allowances on this expenditure should be entered within the Calculation section of this data entry.

  • Allowances relating to zero-emissions goods vehicles – enter the allowances claimed on zero emissions goods vehicles.

  • Disposal value of zero-emissions goods vehicles’ points – enter the disposal value of asset(s) disposed of during the period.

  • Allowances relating to enterprise zones – enter the allowances claimed on Enterprise Zones.

  • Disposal value relating to enterprise zones’ points – enter the disposal value of asset(s) disposed of during the period.

  • FYA applicable to electric charge-points – enter the FYA claimed on electric charge points. Ensure the FYA claimed is entered into the Additions eligible for FYA field in the Calculation section.

  • Disposal value relating to electric charge-points – enter the disposal value of asset(s) disposed of during the period.

  • Allowances relating to zero-emissions cars – enter the allowances claimed on zero emissions cars. Ensure that the allowances claimed are included in the Calculation section. Note that if the period straddles 1/4/2021 the value from this field is shown in box 725 of the CT600. If the period starts on or after 1/4/2021 then the value is shown in box 726.

  • Disposal value of zero-emission cars – enter the disposal value of asset(s) disposed of in the period. This is a requirement of the CT600 (2021) but will only be shown in box 727 where the period starts on or after 1/4/2021. If the period started before this date the value is not required to be shown on the CT600.