Capital Allowances

Main Capital Allowances

The cost of purchasing capital equipment in a business is not revenue tax deductible expense. However tax relief is available on certain capital expenditure in the form of capital allowances.

Main Capital Allowances 2016/2017 2015/2016
Plant & Machinery
– Writing down allowance (some long life assets 6%) 18% 18%
– Long life assets (including integral features) 8% 8%
– Approved energy-savings items 100% 100%
– Annual Investment Allowance 100% 100%
up to £500,000
Motor Cars
Cars acquired from April 2009
Less than 110 co2 100% 100%
Less than 160 co2 18% 18%
More than 160 co2 8%  8%
Cars acquired from April 2013
Less than 95 co2 100%
Less than 130 co2 18%
More than 130 co2 8%
Other Items
– Research & Development (Limited Company 125%) 100% 100%
– Enterprize Zone buildings 100% 100%
– Industrial buildings, hotels and agricultural buildings Nil Nil