SE36630 - Deductions from emoluments: capital allowances: calculating the allowances due: first year allowances: rates of first year allowance
The rate of first year allowance which applies depends on when the plant or machinery was purchased, and where it is to be used, as shown in the table below. For 2003/04 onwards, see EIM36630.
| Type of plant/machinery, and where item to be used | Qualifying period (all dates inclusive) | Rate of FYA |
| Most items acquired primarily for use in Northern Ireland (see below for exceptions) | 1.11.92 to 31.10.93
1.11.93 to 1.7.97 2.7.97 to 11.5.98 12.5.98 to 11.5.2002 12.5.02 onwards | 40%
No FYA available 50% 100% See "elsewhere" rate, below |
| Items acquired for use elsewhere (and Northern Ireland items to which the 100% FYA does not apply) - but see below for computer equipment | 1.11.92 to 31.10.93
1.11.93 to 1.7.97 2.7.97 to 1.7.98 2.7.98 onwards | 40%
No FYA available 50% 40% |
| Computer and communication technology equipment - wherever used (see SE36730 and SE36731) | 1.4.00 to 31.3.2004
(as regards items purchased before 1.4.00 see above) | 100% |
Note that the full first year allowance is due even if the expenditure is incurred part way through the year, or if the employment begins part way through the year. But the allowance must be apportioned if the machinery or plant is used partly for non-business purposes (see SE36570).
The items which are excluded from the 100% first year allowance which applies to items acquired for use primarily in Northern Ireland are
- goods vehicles used in a haulage business (it is unlikely that you will see such a claim from an employee) and
- unauthorised expenditure on items for use primarily in agriculture and fishing businesses. If you see a case where you think this exclusion applies, obtain advice from Personal Tax Division, Solihull.
See SE36640 for circumstances where the 100% first year allowance for items acquired primarily for use in Northern Ireland has to be withdrawn.
