Capital Allowances

Capital allowances (rates effective from April 2013)

First year and initial allowances	%
Research and development	100
Enterprise zone buildings	100
Energy-saving technologies including certain cars	100*
Water efficient technology	100*
Business premises renovation	100
Renovation/conversion of flats over shops	100
Plant and machinery
- Annual investment allowance	100 – max £250,000**

Writing down allowances
Plant and machinery
- long life assets and integral fixtures	8*** - reducing balance
- other plant & machinery	18*** - reducing balance
Cars **** - CO2<96g/km (incl. electric cars)	100
- CO2 96-130g/km #	18- reducing balance
- CO2>130g/km #	8 - reducing balance
Intangible assets
- companies (all intangibles)	4 - straight line (min)
- other (patent rights and know how)	25 - reducing balance
Industrial buildings, hotels, agricultural buildings	0 - from April 2011

* see www.eca.gov.uk for details

** £100,000 for 2011/12, £25,000 from April - December 2012; transitional rules apply

*** For pools less than £1,001: any amount up to pool balance. 10%/20% prior to April 2012

**** Different rules apply to cars bought pre-April 2009

# cut-off point changed from 160g/km from April 2013

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