Purpose, scope, and background (part 1)
Updated 20 May 2024
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This publication is available at https://www.gov.uk/government/publications/help-to-avoid-errors-in-claims-for-plant-and-machinery-allowances-gfc5/purpose-scope-and-background-part-1
HMRC have found some areas where there is a particular risk a plant and machinery claim may be inaccurate. We want to share information to help you manage those risks.
These guidelines do not represent any change in the law or HMRC policy. They are not designed to be used in isolation, or to create an end-to-end process for businesses to comply with the rules. You should read these guidelines alongside our capital allowances customer guidance and HMRC’s internal guidance.
Background
The following capital allowances may be available for expenditure on plant or machinery:
- annual investment allowance (AIA)
- enhanced capital allowances in special tax sites
- 100% first-year allowances
- writing down allowances
Super-deduction and special rate (SR) first-year allowances were available to claim for some plant and machinery expenditure incurred on or after 1 April 2021 and before 1 April 2023.
Many businesses may find that claiming annual investment allowance is the right choice for them, but common errors can be made whichever allowance is claimed.