Capital allowances - corporation tax

Question 1

Full expense relief dates

Answer 1

1 april 2023 to 31 march 2026

Question 2

What does full expense relief apply for

Answer 2

main pool assets only, new not second assets, not available for cars and not capped with balancing charge on disposal

Question 3

Balancing charge on disposal of full expense relief

Answer 3

100% of lower of proceeds and cost

Question 4

Super deduction and 50% first year allowance

Answer 4

130% full expense relief and 50% for special rate pool

Question 5

Balancing charge on assets which claimed 50% special rate pool

Answer 5

Balancing charge = 50% x lower of disposal proceeds or cost

Question 6

Balancing charge on assets which have claimed the 130% super deduction prior to 1st April 2023

Answer 6

Balancing charge = 130% x disposal value (proceeds limited to cost)