First year allowances

02 February 2005 / Alan Boby

Issue: 3993 / Categories: Events

First year allowances

First year allowances (FYAs) were re-introduced in 1998 for companies and businesses that are SMEs and currently stand at 40% of the expenditure incurred in the first chargeable period for plant and machinery generally. In addition, claims can be made at a rate of 100% for specialist items such as energy-saving equipment and 50% for small enterprises in the year ended 31 March 2005.

First year allowances

First year allowances (FYAs) were re-introduced in 1998 for companies and businesses that are SMEs and currently stand at 40% of the expenditure incurred in the first chargeable period for plant and machinery generally. In addition claims can be made at a rate of 100% for specialist items such as energy-saving equipment and 50% for small enterprises in the year ended 31 March 2005.

Whilst the position for FYA claims made by limited companies is defined by the SME limits set by company law the position for other businesses is perhaps not so obvious. The legislation at CAA 2001 s 48(2) defines businesses capable of qualifying for the purposes of claiming FYAs as one of the following:

(i) an individual

(ii) a partnership of which all the members are individuals

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