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Capital allowances

The two prime benefits of Research & Development Allowances are tax relief on certain assets that would not normally qualify for capital allowances and an increased rate of capital allowance.

For example, capital allowances of 100% are available on property that is occupied for research and development. Any relief claimed is retained even if the use of the property is changed so that R & D activities are no longer carried out in it. There is however a claw-back of the relief if the property is sold.

100% capital allowances are also available on plant that is used for research and development activities, in addition to the normal annual investment allowance limit. This is very useful if capital expenditure exceeds the annual investment allowance.