Capital Allowances 2016/17

Capital allowances

Plant and machinery

Notes

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. Transitional rules apply where a period of account straddles the change of the Annual Investment Allowance limit.
4. Special rate pool includes long life assets, plant integral to buildings and thermal insulation.

Motor cars

Notes

1. For the 100% allowance the car must be acquired new, not second 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.