Capital Allowances

Capital allowances (rates effective from April 2016)

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 £200,000**
   
Writing down allowances  
Plant and machinery  
- long life assets and integral fixtures 8*** - reducing balance
- other plant & machinery 18*** - reducing balance
Cars  **** - CO2<76g/km (incl. electric cars)# 100
                 - CO2 76-130g/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

** £250,000 for 2013/14, £500,000 April 2014 to December 2015; 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

#<96g/km 2013/14.  Planned to reduce to 50g/km April 2018.

## cut-off point changed from 160g/km from April 2013.  Planned to reduce to 110g/km April 2018.

### note that goodwill etc acquired from related party not eligible if it was first created prior to 1st April 2002 or was transferred after 3rd December 2014

To find out how Chapman Robinson & Moore can help your business either call 01865 379272, or click here to arrange a free Confidential Business Analysis.