UK Property Business — Capital Allowances

Annual Investment Allowance

This section contains boxes to enter expenditure qualifying for Annual Investment Allowance and to allocate it to the Main Pool and Special Rate Pool as appropriate.

Max annual investment allowance available for period shows the maximum annual investment allowance claim that the company can make for the period, including claims made at Trade – Capital Allowances.

If you have entered an annual investment allowance claim at Trade – Capital Allowances, then the amount claimed will appear in this section as Trade total expenditure.

If there has been a change in the Qualifying expenditure limits during the period, then there will be two boxes for each of the Main pool and Special rate pool: one for expenditure before the limit change and one for expenditure after.

If part of the annual allowance is to be allocated to a group or connected company, enter the amount allocated in Amount claimed elsewhere. If the chargeable period straddles a date of change of the annual limit, enter the amount for the notional chargeable period and also include this amount in the adjustment for the chargeable period.

If the company also has a Trade, the amount entered will be reflected in the Annual Investment Allowance section for this activity.

Total annual investment allowance claimed shows the total amount claimed as Annual Investment Allowance in respect of the company’s UK property business. This amount is included in Total capital allowances/(balancing charges) at the bottom of the page. It does not include any claim made at Trade – Capital Allowances.

First Year Allowances

This section contains boxes for Electric charge-points, Zero-emission goods vehicles, Zero-emission cars and Other expenditure for both the Main pool and Special rate pool, as appropriate.

Use these boxes to allocate any First Year Allowance claims to the relevant category.

Total first year allowance claimed shows the amount you are claiming as First Year Allowances. This is included in Total capital allowances/(balancing charges) at the bottom of the page.

130% Super-deduction

Use the First Year Allowances Super-deduction section to claim the 130% super-deduction.

Enter the amount of expenditure on which the claim is to be based. The uplifted amount will appear in the Claim column.

50% First Year Allowance

Use the First year allowances section, to claim first year allowances on special rate plant and machinery.

If applicable, enter the expenditure's balance in the Writing Down Allowance section.

Enter amounts in Additions under Special rate pool.

100% First Year Allowance

Full expensing is a 100% first-year allowance which allows companies to claim a deduction from taxable profits that is equal to 100% of their qualifying expenditure in the year that expenditure is incurred.

Expenditure must be incurred on the provision of “main rate” plant or machinery on or after 1 April 2023.

The plant and machinery must be new and unused, must not be a car, given to the company as a gift, or bought to lease to someone else.

Disposal of Assets Subject to a Balancing Charge

If a company disposes of an asset which has been subject to a First Year Allowance super-deduction claim or a 50% First Year Allowance special rate plant and machinery claim, then a balancing charge may arise in respect of any disposal proceeds.

This section calculates the balancing charge and includes it on the return form CT600.

Super-deduction Disposals

Enter at Proceeds the amount received for the assets. If the proceeds received for an asset exceed the acquisition cost, then use the acquisition cost instead.

The balancing charge equals the proceeds, uplifted for the relevant amount of the super-deduction relief received. The relevant amount is calculated as 1.3 times the acquisition cost for that portion of the accounting period which falls before 1 April 2023.

Thus, for an accounting period ending before 1 April 2023, all of the super-deduction uplift will be clawed-back.

For an accounting period which includes 1 April 2023, some, but not all, of the uplift will be clawed-back.

The claw-back is calculated as follows:

Multiply Proceeds by 0.3.
Divide the number of days before 1 April 2023 by the total days in the accounting period.
Multiply the above two results.
Add to Proceeds.

For an accounting period which begins on or after 1 April 2023, none of the uplift will be clawed-back and the balancing charge will be equal to the proceeds.

50% Special Rate Plant and Machinery Claim

Enter at proceeds only that portion of the amount received which relates to the First Year Allowance claim.

For example, if the FYA claim related to 50% of the asset, and disposal proceeds of £5,000 are received, then enter £2,500 here. The remaining £2,500 should be entered in in the Writing Down Allowance section, immediately above the Disposal of Assets Subject to a Balancing Charge section.

Freeports — Structures and Buildings

Use the Other Capital Allowances section, to claim Freeports Structures and Buildings allowances

Enter Structures and Buildings allowances at Other Capital Allowances > Structures and Buildings > Allowance claimed

If you need to provide additional information:

use the Supporting Information box
or upload a PDF from Attachments for Online Filing using the Additional Documents section

Writing Down Allowance

This section calculates the Writing Down Allowance available to the company for the period.

TWDVb/fwd	Use the boxes to enter any Tax Written Down Values brought forward for the Main Pool and the Special rate Pool.
Additions	Enter the value of any additions to the Main pool or Special rate pool, as appropriate.
Zero-emission goods vehicle disposals	Enter the proceeds (or deemed proceeds) of any Zero-emission goods vehicle disposals from the Main pool.
Zero-emission car disposals	Enter the proceeds (or deemed proceeds) of any Zero-emission car disposals from the Main pool.
Electric charge-point disposals	Enter the proceeds (or deemed proceeds) of any Electric charge-point disposals from the Main pool.
All other disposals	Enter the proceeds (or deemed proceeds) of any disposal. other than Zero-emission goods vehicle, Zero-emission car and Electric charge-point disposals, from the Main pool or Special rate pool.
Balancing allowance	If Subtotal is greater than nil and the business activity ceased during the period, then Balancing allowance will be equal to Subtotal. Otherwise, Balancing allowance will be nil.
Balancing charge	If Subtotal is a negative, then Balancing charge will be equal to Subtotal. Otherwise, Balancing charge will be nil.
Small pools write off	If Subtotal is less than £1,000 and the business activity did not cease during the period, then Small pools write off will equal Subtotal. Otherwise, Small pools write off will be nil.
Override	If a Small pools write off is available but you do not wish to claim it, then select Override small pools write off. This will reduce Small pools write off to nil.
Writing down allowance	Calculated at the relevant percentage for either the Main pool or Special rate pool.
TWDVc/fwd	The Tax Written Down Value carried forward figure is equal to Subtotal less Writing down allowance.
Integral features expenditure incl. in additions	Enter here the figure within Additions which relates to integral features. This information will be used to populate the ‘Machinery and plant on long-life assets and integral features’ and ‘Other machinery and plant’ boxes, in the capital allowances section of the company tax return.
Total allowances/(charges)	This is total amount of WDA you are claiming for the Main pool and Special rate pool, including any balancing adjustments and Small pool write offs. It is included in Total capital allowances/(balancing charges) at the bottom of the page.

Other Capital Allowances

This section contains boxes for Structures and buildings, Short life assets and Other.

There are boxes for both the expenditure in the period and the allowance claimed for each category.

The expenditure entered is included in the relevant box on the CT600.

Total allowances/(charges) shows the total other allowances claimed and is included in Total capital allowances/(balancing charges) at the bottom of the page.

Total capital allowances/(balancing charges)

This figure is the sum of Annual Investment Allowance, First Year Allowances, Writing Down Allowance, and Other Capital Allowances claimed for the period.

Supporting Information

This section allows additional information to be entered to support the capital allowances figures presented. The text will be included in the corporation tax computation.