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

100% of the cost of qualifying conversions and renovation work

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.