6 key Capital Allowances announcements in Budget 2018

  1. Annual Investment Allowance (AIA) increased from £200k to £1m for all qualifying investment in plant and machinery made on or after 1 January 2019 until 31 December 2020.
  2. New non-residential structures and buildings allowance (SBA) will be eligible for a 2% capital allowance where all the contracts for the physical construction works are entered into on or after 29 October 2018.
  3. From April 2019, the capital allowances special rate for qualifying plant and machinery assets will be reduced from 8% to 6% to more closely match average accounts depreciation.
  4. The government will end Enhanced Capital Allowances (ECAs) and First Year Tax Credits for technologies on the Energy Technology List and Water Technology List from April 2020.
  5. The government will extend the ECAs for companies investing in electric vehicle charge points to 31 March 2023.
  6. The government will freeze Aggregates Levy rates for 2019-20, but intends to return the Levy to index-linking in the future.

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