CA20008 | Plant and Machinery Allowances (PMA): introduction: interaction between different plant and machinery allowances (PMAs)

CAA01/S52A, S58

If expenditure qualifies for more than one type of PMA, a person can choose which PMA to claim in respect of that expenditure. However, a person cannot claim multiple PMAs in respect of the same amount of expenditure.

Example

In its accounting period ending 31 December 2024, Hunter and Ball Ltd incurs the following expenditure on plant and machinery:

• £250,000 on new laptops;

• £600,000 on new solar panels; and

• £500,000 on a new electrical system for the business premises.

The expenditure on laptops is available for full expensing (CA23174A), the Annual Investment Allowance (AIA) (CA23080) or main rate Writing-Down Allowances (WDAs) (CA23200).

The expenditure on the solar panels and the electrical system is eligible for the 50% First-Year Allowance (FYA) (CA23174A), the AIA or special rate WDAs (CA23200).

Hunter and Ball Ltd claims the following PMAs:

• £1m of AIA for the £500,000 incurred on the electrical system and £500,000 of the expenditure incurred on the solar panels;

• 50% FYA on the remaining £100,000 incurred on the solar panels, which gives an allowance of £50,000. The remaining £50,000 of expenditure can be added to the special rate pool in a subsequent accounting period;

• £250,000 of full expensing for the expenditure incurred on the laptops.