<Accountant in Watford | Exel Accountancy

Capital Allowances

Capital Allowances

From: 1 January 2019 to December 2019 1 January 2020 to December 2020
Main rate pool: writing down allowance
18% 18%
Special rate pool (long life assets, integral features): writing down allowance8% 8%
Annual Investment Allowance (AIA) cap: £1,000,000 £1,000,000

Expenditure within the AIA qualifies for 100% allowance in the year of purchase. AIA was capped at £200,000 per annum up to 31 December 2018. This limit was temporarily increased to £1m per annum for each of the two years ended 31 December 2020, before reverting back to £200,000 on 1 January 2021. This increase in the AIA cap will help businesses invest in equipment and fixtures (cars and buildings don't qualify), with 100% tax relief in the year of purchase. However, great care is needed to calculate the available AIA for accounting periods which straddle the various changes.

Contact us for all your accounting needs


Exel accountants is an accountancy firm based in Watford Hertfordshire. Exel accountants are a firm of qualified and experienced accountants specialising in providing accounting and taxation services to new and established businesses.


Exel Accountancy Ltd
31 The metro Centre,
Dwight Road,
Watford, WD18 9SB
0192 351 7300
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