Question 1

What is the Annual Investment Allowance (AIA) for 2024/25?

Accepted Answer

The AIA is permanently set at £1,000,000 from April 2023. It gives a 100% first-year deduction for qualifying plant and machinery, with no WDA restriction, for most businesses. Cars are excluded from AIA.

Question 2

What is Full Expensing?

Accepted Answer

Full Expensing (introduced April 2023, made permanent from April 2026) gives companies a 100% first-year deduction for new qualifying main pool assets and 50% for special rate pool assets. It is available to companies only (not sole traders or partnerships) and only for new (not second-hand) assets.

Question 3

What Writing Down Allowance rates apply?

Accepted Answer

Main pool assets (most plant and machinery) attract an 18% WDA. Special rate pool assets — integral building features, thermal insulation, long-life assets and cars with CO₂ > 50g/km — attract a 6% WDA.

Question 4

Was the super-deduction still available?

Accepted Answer

No. The 130% super-deduction ended on 31 March 2023 and was replaced by Full Expensing for companies. No super-deduction claims can be made for expenditure from 1 April 2023.

Allowance	Rate	Who qualifies	Asset type
Annual Investment Allowance (AIA)	100%	All businesses	Main & special rate pool (excl. cars)
Full Expensing — main pool	100%	Companies only	New qualifying main pool assets
Full Expensing — special rate	50%	Companies only	New qualifying special rate assets
Zero-emission car FYA	100%	All businesses	New zero-emission cars
Main pool WDA	18%/yr	All businesses	Most plant & machinery
Special rate pool WDA	6%/yr	All businesses	Integral features, cars CO₂ > 50g/km

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Capital Allowances Calculator 2024/25

Capital allowances summary 2024/25