Main Capital Allowances

Motor Cars

25% of reducing balance (max. £3,000 p.a. per car)

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.