Main Capital Allowances - Cutter & Co Chartered Accountants

Capital Allowances

Allowance %

Plant and machinery

– annual investment allowance £100,000*

100

– certain energy efficient plant, including low emission cars

100

– writing down allowance: general pool

– writing down allowance: special rate pool

*£50,000 to 31.3.10 (companies) or 5.4.10 (income tax traders)

The special rate pool includes long life assets, integral plant in buildings, thermal insulation and cars with CO2 emissions over 160g/km. The general pool contains other plant and machinery.

The old system of cheap/expensive cars has been abolished, but transitional rules cover existing expenditure before April 2009.

Industrial building allowances are being phased out: 4% in 2007/08; 3% in 2008/09; 2% 2009/10; 1% 2010/11; nil thereafter.