Special Rate Pool (“SRP”) Print
Expenditure incurred on the following items on which capital allowances are claimed must be included within the SRP:
- Expenditure on long life assets;
- Thermal insulation within a building;
- Integral features within a building;
Cars with CO2 emissions exceeding 110g/km acquired on or after 6 April 2018 where there is no restriction for private use. For cars acquired before 6 April 2018, but after 5 April 2013 the CO2 emission limit is 130g/km
From April 2019, the rate of WDA claimable is being reduced to 6% on a reducing balance basis. Prior to April 2019 the allowance has been at the rate of 8% on a reducing basis.
Where an accounting period straddles April 2019, the rates are time apportioned to arrive at the hybrid rate.
A company whose year-end is 31 December 2019 will have a hybrid rate of WDA as follows:
|Period 1 January 2019 to 31 March 2019: 8 x 3/12||2.0%|
|Period 1 April 2019 to 31 December 2019: 6 x 9/12||4.5%|
|Hybrid rate of WDA for year ending 31 December 2019||6.5%|
Integral features within a building include any of the following items:
- Electrical systems (including lighting systems);
- Cold water systems;
- Space or water heating systems, powered systems of ventilation, air cooling or air purification, and any floor or ceiling comprised in such a system;
- Lifts, escalators or moving walkways;
- External solar shading.
The rates of WDA assume that the relevant accounting period is a full year. Where the accounting period is a period other than a year, the rate of WDA is adjusted on a pro-rata basis either up or down, to reflect the actual length of the accounting period.
Where expenditure is incurred on plant and machinery within the SRP this should so far as possible be the expenditure on which the Annual Investment Allowance (“AIA”) is claimed to maximise the reliefs due. AIAs cannot be claimed on expenditure on cars included within the SRP.