Enhanced Capital Allowances

Incentive for major capital investment

Sheffield City region is one of only six Enterprise Zones in England that are able to offer Enhanced Capital Allowances to businesses making significant capital investments in plant and machinery.

Making your plant and machinery more affordable

A small number of sites across the region have been identified as the most suitable for major capital investment. These have been earmarked to offer the Enhanced Capital Allowance incentive to qualifying businesses who are looking to make significant investments in plant and machinery

On these selected sites, 100% first-year allowances (FYAs) will be available for significant investments in plant or machinery made during the five-year period between April 2012 and March 2020. These generous allowances make investment in major equipment more affordable and viable for businesses setting up or expanding in the region’s manufacturing centres of excellence.

To find out if your business qualifies for Enhanced Capital Allowances, please contact us.

Example

A company spending £50 million on qualifying plant and machinery would benefit from a corporation tax reduction in year one of £10.5 million (£50 million x 100% ECA x 21% corporation tax rate), compared to reduction of £1.89 million (£50 million x 18% normal capital allowance x 21% corporation tax rate) for a company locating outside the Enterprise Zone.