|Main rate pool: writing down allowance
|Special rate pool (long life assets, integral features): writing down allowance||6%||6%||6%|
|Annual Investment Allowance (AIA) cap:||£1,000,000||£1,000,000||£200,000|
|Structures and Buildings Allowance||3%||3%||3%|
Expenditure within the AIA qualifies for 100% allowance in the year of purchase. The AIA cap is currently £1,000,000 from the 1st January 2019 for two years. On the 1st of January 2022 the AIA limit will be reduced to £200,000 again. If the accounting period is shorter or longer than 12-months the AIA cap is apportioned based on the length of the period.
The AIA allows businesses to invest in equipment and fixtures (cars and buildings don't qualify), with 100% tax relief in the year of purchase.