2019/20	2020/21
		£	£
Capital allowances
Main writing-down allowance (reducing balance)		18%	18%
Special rate writing-down allowance (reducing balance)		6%	6%
Structures and buildings allowance (SBA)		2%	2%
Motor cars if CO2 > 50g/km but does not exceed 110g/km (note 1)		18%	18%
Motor cars if CO2 > 110g/km (note 1)		6%	6%
FYA – New and unused motor cars if CO2 emissions are 50 g/km or less (or car is electric) (note 1)		100%	100%
Small pool write-off where WDV is £1,000 or less		100%	100%
First-year allowances for certain energy-saving/water-efficient products (note 2)		100%	NA
Annual investment allowance (AIA) (note 3)		£1,000,000	£1,000,000
Annual investment allowance		100%	100%
Note 1: From April 2021, the thresholds for FYA will be reduced from 50g/km to 0g/km. Main rate of 18% capital allowance will be applicable for business cars with CO2 emissions not exceeding 50g/k. Business cars’ CO2 emission exceeding 50g/km will be eligible for writing-down allowance at the special rate of 6%. Note 2: From 1 April 2020 for incorporated businesses and from 6 April 2020 for unincorporated businesses, environmental enhanced capital allowances will be abolished. Note 3: From 1 January 2019 the annual investment allowance is increased from £200,000 to £1m for investment made from 1 January 2019. This is temporarily increased for two years until 31 December 2020. The threshold will revert back to £200,000 from 1 January 2021.