Capital Allowances
Writing Down Allowance
Plant and Machinery*
25%# (reducing balance)
Motor Cars**
25% (reducing balance) - £3,000 max
Industrial and Agricultural Buildings and Hotels
4% (straight line)
*F
or small businesses:
first year allowances (FYAs) of 50% for 12 months from 6.4.06
(1.4.06 for companies). 40% otherwise.
For medium-sized businesses:
FYAs of 40%.
For all businesses:
100% FYAs on expenditure on energy saving plant and machinery.
**100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.3.08.
#6% on certain long life assets.