Allowances
| Capital Allowances |
Writing Down Allowance |
| Plant and Machinery* |
25% (reducing balance) |
| Motor Cars** |
25% (reducing balance) - £3,000 max |
| Industrial and Agricultural Buildings
and Hotels |
4% (straight line) |
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*For small businesses: first year allowances (FYAs) of 50% for 12 months from 6.4.06
(1.4.06 for companies). 40% otherwise.
For medium-sized businesses: FYAs of 40%.
For all businesses: 100% FYAs on expenditure on energy saving plant and machinery.
**100% FYAs on new cars with CO2 emissions not exceeding 120 gm/km until 31.3.08.
6% on certain long life assets.