Tx notes fa22 Final

(b)
Writing Down Allowance (WDA) 
The cost of most plant and machinery that has not qualified for AIA will be allocated to a pool 
of expenditure that will then be eligible for an annual WDA of either 18% per annum if 
expenditure qualifies for the main pool, or 6% per annum if allocated to the special rate pool, 
available on a reducing balance basis. 

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With the exception of new electric motor cars with zero CO2 emissions which attract a 100% 
First Year Allowance (FYA) (see below), motor cars will qualify for a WDA of either 18% per 
annum if CO2 emissions are between 1 and 50 grams per kilometre and be allocated to the 
main pool, or 6% per annum if CO2 emissions exceed 50 grams per kilometre which will then 
be allocated to the special rate pool. Remember that cars do not qualify for AIA.
As with AIA the WDA will be time apportioned where the accounting period is other than 12 
months.
Motor Cars 
New electric cars with zero CO2 emissions 
100
CO2 emissions between 1 and 50 grams per Km
18
CO2 emissions over 50 grams per Km
6
(c)
First Year Allowance (FYA) 
New electric cars with zero CO
2
emissions attract a 100% FYA. The FYA is never time 
apportioned.

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