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Budget 2006
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 2006 and 31 March 2007 for enterprises subject to corporation tax |
50
|
| qualifying expenditure between 6 April 2006 and 5 April 2007 for other enterprises |
50
|
| Small and medium sized enterprises ‡ |
40
|
|
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 used in oil extraction trade ‡ |
100
|
Plant and machinery with expected life 25 years or more |
|
| writing down allowance ¶ |
6
|
| First year allowance | |
| 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 x |
|
| 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) # |
150%
|
| large companies # |
125%
|
| Loss making SMEs can surrender deduction for a payment of 16% of the amount surrendered (subject to conditions) | |
Cleaning up contaminated land and buildings |
150% |
|
Intangible assets (including intellectual property and goodwill)
|
|
* Restricted to £3,000 per annum for cars costing over £12,000, other than those with low emissions
† On reducing balance
‡ Restrictions apply
§ Expenditure pre 1 April 2008
¶ 25% rate applies where expenditure does not exceed £100,000 per annum or is on assets in dwellings, shops, showrooms, hotels, offices
# Additional credits available for certain vaccines research expenditure
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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