Limited Companies
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 (to 31 March 2008 for companies) | 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 120 g/km C02 | |
| Registered 17 April 2002 - 31 March 2008 | 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. |
| Business premises renovation allowance (from 11 April 2007) | 100% |
| Research and Development Relief | 130% or 175% See note 2. |
| Flat conversions | 100% |
| Know how writing down allowance on reducing balance | 25% |
| Patent rights | |
| Writing down allowance on reducing balance | 25% |
| Disadvantaged areas - renovation of business premises | 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. Research and Development Relief. The rate of relief for large companies will increase to 130% of qualifying R&D expenditure. In the case of SME R&D tax credit scheme, the rate of relief will increase to 175% for companies claiming enhanced deductions against profits.
Did you know?
April 2008 and Beyond
There have been many changes announced, please contact us for details that you consider apply in the future
