Buying plant and machinery

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Buying plant and machinery by Mind Map: Buying plant and machinery

1. Definition of plant and machinery

1.1. No statutory definition

1.2. Lists of assets that cannot be plant and machinery

1.2.1. Buildings

1.2.2. Structures

1.3. Case law

1.3.1. Used for carrying on the business

1.3.1.1. Not stock in trade

1.3.1.2. Not the business premises or part of the business premises

2. Qualifying activity

2.1. Trade

2.2. Furnished holiday lettings

2.3. Other

3. Types of allowance

3.1. Annual investment allowance

3.1.1. 100% relief on £1m

3.1.1.1. Extended to December 2021

3.2. Temporary FYAs

3.2.1. Super deduction

3.2.1.1. 130% FYA

3.2.1.1.1. Main pool assets

3.2.2. SR allowance

3.2.2.1. 50% FYA

3.2.2.1.1. Sprecial-rate assets

3.2.3. Conditions generally applying

3.2.3.1. Companies only

3.2.3.2. P&M

3.2.3.2.1. Incurred between 01-04-21 and 01-04-23

3.2.3.2.2. Unused and not second-hand

3.2.3.3. Exclusions apply

3.2.3.3.1. eg Cars

3.2.3.3.2. eg Permanently discontinued

3.2.3.3.3. eg Leasing

3.2.4. Disposal

3.2.4.1. Balancing charge

3.2.4.1.1. Proceeds x relevant factor

3.3. First-year allowance

3.3.1. 100% relief on particular assets

3.3.1.1. Cars: electric and zero emissions from April 2021

3.4. Writing down allowance

3.4.1. 18% on main rate pool

3.4.2. 6% on special rate pool

3.5. Balancing allowance

3.6. Balancing charge

4. Private use adjustment

4.1. For unincorporated businesses

5. Timing of expenditure

6. Pooling of assets