EIM36615 | Deductions from earnings: capital allowances: types of Plant and Machinery Allowances (PMAs)

There are three main types of Plant and Machinery Allowances (PMAs): Annual Investment Allowance (AIA), First-Year Allowances (FYAs) and Writing-Down Allowances (WDAs). Where the expenditure qualifies for more than one type of PMA, it is up to the person to choose which of the available allowances they will claim (CA20008).

It is likely that most employees who claim PMAs will choose to claim the AIA. The AIA is a 100% allowance which is available in the year in which the expenditure is incurred. The AIA is available up to an annual threshold, which has been £1 million since 1 January 2019.

Further information about the AIA can be found at gov.uk and in CA23081 onwards.

For information about WDAs, see CA23200.