Self Employed full 38 - Capital allowances at 6% on equipment, including cars with higher CO2 emissions

You can claim 6% WDA a year on the balance of expenditure in the special rate pool. Such expenditure includes:

• cars bought between 6 April 2018 and 5 April 2021 with CO2 emissions of more than 110g/km
• integral features of a building or structure, such as electrical and water systems, lighting, lifts and escalators
• insulation that you added to an existing building
• assets or equipment with a life expectancy of more than 25 years from when they were new

See 'How to calculate a capital allowances pool balance' below.

If the final balance of qualifying expenditure in the special rate pool, before you claim WDA, is £1,000 or less, you can claim the small pools allowance of up to the whole amount, instead of the 6% WDA.

How to calculate a capital allowances pool balance

Start with the unrelieved expenditure in the pool at the end of the previous chargeable period. Add the balance of qualifying expenditure for which a claim to FYA was made in the previous chargeable period. Add all the qualifying expenditure for the pool incurred in this chargeable period except for expenditure for which a claim to FYA is made. Deduct the claim made to the AIA. Deduct the total of all disposal values (usually receipts) for assets no longer used in the business. The result is the pool's balance of qualifying expenditure.

You can use your Annual Investment Allowance (AIA) wholly or partly against main pool and special rate pool expenditure (not cars).

If you use equipment or cars for both business and private purposes, you must reduce the allowances you claim by the private use proportion. You must keep a separate pool of expenditure for each of the items you use for private purposes and apply the appropriate WDA rate (18% or 6%), this is called a single asset pool. The 'small pools allowance' does not apply to single asset pools.

For more information about go to Capital allowances and balancing charges.

For more information about go to CO2 emissions.

Note: If you claim the trading income allowance, you cannot deduct allowable expenses or simplified expenses, do not enter an amount here.