Last week the Government published the Corporation Tax Statistics 2019 which makes for some interesting reading and can be found at this link Capital Allowances and National Corporation Statistics
It is great to see that capital allowances claims are increasing again following a dip in 2016-2017. Below are some of the main points relating to capital allowances rom the report:
- Over the last 6 years, capital allowance claims have increased by 36%, from £72 billion in in 2012-13 to £97 billion in 2017-18. This is despite a £3 billion decrease between 2015-16 and 2016-17.
- After a dip in claims for capital allowances in 2016-17, claims increased 10% from 88 billion in 2016-17 to £97 billion in 2017-18.
- AIA claims have held constant at £13 billion – current limit is £1million
- The Construction sector claims the most AIA as a proportion of their total capital allowance claims, reflecting the large number of smaller companies in this sector.
- Eight sectors account for 80% of capital allowances claims, though these sectors comprise only 42% of all companies liable for Corporation tax.