Plant and Machinery – Special Rate Pool

This section allows input and calculation of capital allowances for the Plant & machinery special rate pool. Additions and disposals can be entered as total figures in the relevant fields of the Calculation tab, or the Asset movements tab can be used to input details of purchases and disposals.

It comprises of four tabs: 

Calculation – enter Additions and disposals as total amounts. 

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

Special rate allowance 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. 

Click Save changes to save your changes and return to the Capital allowances summary tab. Switching between the Calculation, Asset movements, Special rate allowances and Freeport FYA assets tabs will automatically save any changes made in the screen.

Calculation

This tab shows the input fields and calculation fields for the special rate pool allowances. Please note that where a claim to Super Deduction allowances has been made all additions and disposals must be entered into Asset movements tab to be able to claim the required allowances. 

Plant & Machinery special rate 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.
• 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 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 will display the amount of First Year Allowance claimed in the period. 

Special Rate Allowances 

For more information see https://www.gov.uk/government/publications/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021 and  

The Finance Act 2021 https://www.legislation.gov.uk/ukpga/2021/26/enacted 

The Special rate allowance due on expenditure incurred in the period 1/4/2021 to 31/3/2023 is 50% of the cost. The remaining 50% is added to the Special rate pool written down value carried forward. A written down allowance can then be claimed in next period.  

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 Special rate allowance was previously claimed has not been disposed.   

• Additions eligible for S R allowances – this field will show the expenditure on which the 50% Special rate first year allowance is being claimed. To make a claim enter the expenditure incurred into the grid on the ‘Special rate allowance assets’ tab.  

• 50% allowances claimed – Taxfiler will display the amount of the Special rate allowance claimed in the period. 

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 of 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. 50% of the proceeds of an asset on which a special rate allowance has been claimed will be included with other disposal proceeds.   
• 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 Special rate expenditure’ – Taxfiler will automatically calculate and show the balancing charges arising on these assets which represents 50% of the disposal proceeds.  

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 @ 8% – 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.
• Special rate expenditure added to pool – this amount represents 50% of the cost of expenditure incurred on which a claim to special rate allowance has been claimed in 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.

Expenditure 

• 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.  
• High CO₂ emission cars – enter the expenditure on the purchase of a car with high CO₂ emissions.  

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 then click Apply suggested AIA allocation. (If the button is not shown then the suggested AIA allocation has already been applied).