Deductions from earnings: capital allowances: particular items of machinery or plant: 100% first year allowance for computers and hi-tech communications equipment bought between 1 April 2000 and 31 March 2004
Section 45 CAA 2001
The normal first year allowance for plant and machinery is 40% (see EIM36630). However, section 45 CAA 2001 provides for a 100% first year allowance to be given in respect of information and communications technology equipment purchased between 1 April 2000 and 31 March 2004 (both dates inclusive). This applies wherever the equipment is to be used.
The equipment that qualifies for the 100% first year allowance is:
- computer equipment - comprising computers (ranging from small palmtop organisers to large systems), computer peripherals such as keyboards, printers etc; cabling and other equipment to link computers to each other, or to data networks such as the internet; and dedicated electrical systems for computers
- high-tech communications technologies - comprising WAP (wireless application protocol) phones, 3rd generation (3G) mobile phones and equipment with similar applications and functionality; and set-top boxes that are connected to televisions and are capable of receiving and transmitting information from and to data networks such as the internet
- software - comprising software for use with computers or high-tech communication technologies. This covers all computer software, including new software for use on computers bought before 1 April 2000 and the costs of creating new websites.
For more information about the conditions which must be satisfied: