Main Capital Allowances


Main Capital Allowances
Motor Cars
On reducing balance (max. £3,000 p.a. per car) 25%
Plant and machinery
Small firms:
   Allowance for the first year 50%
   Writing down allowance on reducing balance 25%
Medium sized firms:
   Allowance for the first year 40%
   Writing down allowance on reducing balance 25%
Large firms:
  Writing down allowance only on reducing balance 25%
Long Life Assets
Allowance for first year 6%
Writing down allowance for subsequent years on reducing balance 6%
Energy Saving Technology
All firms 100%
Cars emitting not more than 120g/km CO2
Registered 17 April 2002 - 31 March 2015 100%
Buildings
Industrial buildings and qualifying hotels 4% of building cost p.a.
Commercial/Industrial buildings in an enterprise zone 100% of building cost
Agricultural buildings 4% of building cost p.a.
Research and Development 100%

Notes

1. 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.

2. A small firm is defined as a business that satisfies any two of the following conditions: (a) turnover £5,600,000 or less (b) assets £2,800,000 or less (c) not more than 50 employees.

3. A medium firm is defined as a business that satisfies any two of the following conditions: (a) turnover £22,800,000 or less (b) assets £11,400,000 or less (c) not more than 250 employees.

 

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