Chancellor Jeremy Hunt’s Autumn Statement (17 November 2022) included very little on capital allowances, with a couple of minor changes.

Electric Charging Points – 100% allowance

• This 100% capital allowances for expenditure incurred on charging points for electric vehicles, will be extended to 31 March 2025 (Corporation Tax) and 5 April 2025 (Income Tax). 
• This was originally planned to end in April 2023.

Investment Zones

• The original plans announced in October have been scaled back, refocusing on a limited number of high potential clusters.
  • The original list of 38 councils expressing an interest will not be taken forward.
• No details about rate of allowances, locations etc.

As previously announced in the Mini-budget in September:

Annual Investment Allowance (AIA)

• The 100% AIA has been £1,000,000 since 1 January 2019 and this has now been made the permanent level of AIA.
• Before this announcement, the AIA was expected to fall to £200,000 on 1 April 2023.
  • As a reminder, the AIA allows a 100% deduction for qualifying plant and machinery expenditure upto the AIA limit incurred in a business, company, or group of companies.
  • Above the AIA, the usual capital allowances writing down allowances apply.
  • It is recommended to use the AIA against special rate expenditure first, particularly with the 130% Super Deduction (available until 31 March 2023) providing more tax relief than the AIA.
• Interestingly the policy costings show the AIA having an impact at this level until 2028, but let’s see if it really stays this high for that long!

Super Deduction

• No mention of the Super Deduction rules, so this is likely to end as planned on 31 March 2023.
• If you have an accounting period other than 31 March 2023, the Super Deduction rate is proportionally reduced for those months after 31 March 2023.