Motor Cars
On reducing balance (max. £3,000 p.a. per car)	25%
Plant and Machinery
Small firms:
Allowances for the first year (to 31 March 2007 for companies)	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 120 g/km CO₂
Registered 17 April 2002 - 31 March 2008
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:

1.	Capital allowances allow the cost of capital assets to be written off against taxable profits. They replace the charge for deprechiation in the business accounts, which is not allowable for tax relief.
2.	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 £2,800,00 or less (c) not more than 50 employees
3.	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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Tunbridge Wells

Kent TN1 1NU

01892 507 280


Wells Associates is the trading name of Wells Professional Partnership LLP which is registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.

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