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Budget 2004
Business Taxation
Capital Allowances and Reliefs
| Plant and machinery with expected life less than 25 years | |
| Writing down allowance *† |
25
|
|
Small enterprises |
|
| qualifying expenditure between 1 April 2004 and 31 March 2005‡ |
50
|
| Small and medium sized enterprises§ |
40
|
|
The thresholds for small and medium sized enterprises have increased for accounting periods ending after 29 January 2004 All enterprises |
|
| designated energy saving plant and machinery |
100
|
| new electric cars and low emission cars ¶ |
100
|
| refuelling equipment for vehicles using natural gas or hydrogen fuel ¶ |
100
|
| environmentally beneficial plant and machinery |
100
|
Plant and machinery with expected life 25 years or more |
|
| writing down allowanceœ |
6
|
| plant used in oil extraction trade† |
24
|
| Plant and machinery for overseas leasing | |
| writing down allowance† |
10
|
| Industrial and agricultural buildings, hotels, sports pavilions, dredging and highway concessions | |
| writing down allowance |
4
|
Enterprise zone buildings |
|
| initial allowance |
100
|
| writing down allowance |
25
|
Flat conversion allowance |
|
| initial allowance |
up to 100
|
| writing down allowance |
25
|
Research and development |
100 |
UK film production and acquisition § |
100 |
| Patent rights and know how# | |
| writing down allowance† |
25
|
Company tax credits |
|
| Research and development § | |
| small and medium sized enterprises (SME) ƒ |
150%
|
| large companies ƒ |
125%
|
| Loss making SMEs can surrender deduction for a payment of 16% of the amount surrendered (subject to conditions) | |
Cleaning up contaminated land |
150% |
|
Intangible assets (including intellectual property and goodwill) Companies can claim tax relief for expenditure incurred on the creation, acquisition and enhancement of intangible assets. Relief is based on the accounts amortisation unless an election is made for relief to be granted at a fixed rate of 4% per annum. |
|
* Restricted to £3,000 per annum for cars costing over £12,000, other than those with low emissions
† On reducing balance
‡ Expenditure on information and communications technology equipment before 1 April 2004 qualifies for 100% allowance
§ Restrictions apply
¶ Expenditure pre 1 April 2008
œ 25% rate applies where expenditure does not exceed £100,000 per annum or is on assets in dwellings, shops, showrooms, hotels, offices
æ On renovation or conversion of space above commercial premises to provide flats to rent
# Not applicable to acquisitions by companies
ƒ Additional credits available for certain vaccines research expenditure from 22 April 2003
The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.
This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.
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