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    Capital allowances basics

    5 min read · 2025-01-15

    • Annual Investment Allowance: 100% deduction up to £1m a year on most plant and machinery
    • Full expensing: 100% first-year deduction on new qualifying plant (companies only)
    • Writing-down allowances: 18% main pool, 6% special rate pool
    • Cars have separate rules based on CO2 emissions