Self Employed full 37 - Capital allowances at 18% on equipment, including cars with lower CO2 emissions

You can claim 18% writing down allowance (WDA) on the balance of expenditure on equipment in the main pool, any unrelieved amount is carried forward to your next period.

Such expenditure includes cars bought between 6 April 2018 and 5 April 2021 with CO2 emissions between 50g/km and 110g/km.

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

You can claim 18% WDA on the final balance. If the final balance of qualifying expenditure in the main 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 18% 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 go to Capital allowances and balancing charges.

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