Capital Allowances


Capital allowances

Plant and machinery

Period of expenditure from1.4.20171.4.2016
Annual Investment Allowance£200,000£200,000
Energy/water-efficient technologies100%100%
Writing down allowance – general pool18%18%
Writing down allowance – special rate pool8%8%


  1. Neither capital expenditure nor depreciation is generally allowed as an expense.
  2. The writing down allowance spreads the cost over several years, and is not related to the accounting depreciation.
  3. Special rate pool includes long life assets, plant integral to buildings and thermal insulation.

Motor cars

CO2 emissions of vehicle (g/km)1.4.20171.4.2016
Up to 75100%100%
Up to 130 (in general pool)18% pa18% pa
Above 130 (in special rate pool)8% pa8% pa


  1. For the 100% allowance the car must be acquired new, notsecond hand.
  2. The 8% allowance applies to cars with emissions over 160g/km that were purchased before April 2013.
  3. Unincorporated businesses: the allowance is reduced for private use of the car.