Capital Allowances

Expenditure On Writing Down Allowance %
Plant and machinery –long life 10
Plant and machinery-‘green technology’ nil
Plant and machinery 20
Integral fixtures 10
Low emission cars<100g/km nil
Industrial buildings 3
Agricultural buildings 3
Enterprise zone nil
Research and Development nil

Annual Investment Allowance (AIA) £50,000 max*

*AIA of £50,000 is available to singleton companies. If a business is ‘related’ to another business the AIA is shared (e.g. in a group of companies where the businesses have similar activities or shared premises) under the control of the same person. Transitional rules also apply.

The above rates are given for illustrative purposes.

There are numerous rules defining the precise nature of which assets attract a particular rate of allowance.

Major changes in the capital allowance regime are anticipated from 2008/09.