The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The special rate pool was introduced by Finance Act 2008 for qualifying expenditure incurred on or after 1 April 2008.
Expenditure that must be allocated to the special rate pool includes that incurred on:
The special rate of writing-down allowances is 6% from 1 April 2019, an amendment made by FA 2019, s 31. It had stood at 8% from 1 April 2012 and 10% before that date, since its introduction.
Where there is a change of the special rate during a chargeable accounting period, a hybrid rate must be used for the whole period. In the case of the rate change in April 2019, the transitional rules in FA 2019, s 31(4)–(7) set out the exact method of calculating the hybrid rate. The hybrid rate is calculated by a strict time apportionment using the number of days at each rate out of the total number of days in the chargeable period. The resulting percentage is rounded to two decimal places. The calculation may not be done on a monthly basis.
For example, where an unincorporated business has a year end of 31 December 2019, the rate will be 6.53%, being the hybrid rate of 95 days at 8% and 270 days at 6%, rounded up to two decimal places.
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