Main Capital Allowances
Motor Cars
25% of reducing balance (max. £3,000 p.a. per car)
Plant and machinery
Allowance for the first year:
| all firms |
|
| energy-saving technology |
100% on expenditure |
| |
|
| small firms |
|
| information technology |
100% on expenditure 1.4.2000 - 31.3.2003 |
| |
|
| small/medium sized firms |
|
| most assets |
40% for expenditure from 2.7.98
50% for expenditure 2.7.97 - 1.7.98 |
| long life assets |
12% for expenditure 2.7.97 - 1.7.98 |
| |
|
| large firms |
|
| |
25% for most assets
6% for long life assets |
| Allowance for subsequent years |
|
| most assets |
25% reducing balance |
| long life assets |
6% reducing balance |
Buildings
4% annually on cost of agricultural land and forestry land; new agricultural and industrial buildings and structures and qualifying hotels
100% on qualifying enterprise zone buildings and fixtures
Note Capital allowances allow the cost of capital assets to be written off against taxable profits. They replace the charge for depreciation in the business accounts, which is not allowable for tax relief.
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