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2.3 MECHANICAL ENGINEERING
ACA is based on the existing capital allowances tax structure or wear and tear allowance, for plants and machinery. Claiming the ACA is carried out the same way as for the standard capital allowances.
Organisations who invest in eligible energy-efficient capital equipment can deduct the full cost of the equipment from their profits in the year of purchase. This reduces the taxable profit in year one by the full cost of the equipment.
Doherty, B., McMahon, J. & Coffey, W. (2019). Accelerated capital allowances: An overview.