|
Rates & Allowances - 2007 / 2008
Capital Allowances
|
Main Capital Allowances |
|
Motor Cars |
|
On reducing balance (max. £3,000 p.a. per car) |
25% |
|
Plant and
machinery |
|
Small
firms: |
|
Allowance for the first year |
50% |
|
Writing down allowance on reducing balance |
25% |
|
Medium
sized firms: |
|
Allowance for the first year |
40% |
|
Writing down allowance on reducing balance |
25% |
|
Large
firms: |
|
Writing down allowance only on reducing balance |
25% |
|
Long
Life Assets |
|
Allowance for first year |
6% |
|
Writing down allowance for subsequent years on reducing balance |
6% |
|
Energy
Saving Technology |
|
All
firms |
100% |
|
Cars
emitting not more than 120g/km CO2 |
|
Registered 17 April 2002 - 31 March 2008 |
100% |
|
Buildings |
|
Industrial buildings and qualifying hotels |
4% of building cost p.a. |
|
Commercial/Industrial buildings in an enterprise zone |
100% of building cost |
|
Agricultural buildings |
4% of building cost p.a. |
|
Research
and Development |
100% |
|
Notes
Capital
allowances enable the cost of capital assets to be written off against taxable profits. They replace the charge for depreciation
in the business accounts, which is not allowable for tax relief.
A
small firm is defined as a business that satisfies any two of the following conditions: (a) turnover £5,600,000 or less (b)
assets £2,800,000 or less (c) not more than 50 employees.
A medium firm is defined as a business that satisfies any two
of the following conditions: (a) turnover £22,800,000 or less (b) assets £11,400,000 or less (c) not more than 250 employees.
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