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Budget 2008
Capital Allowances and Reliefs
| 2008/2009 | 2007/2008 | |
| % | % | |
Plant and machineryAnnual investment allowance |
||
| - on first £50,000 of qualifying expenditure (excluding cars) | 100 | - |
| Writing down allowance* | 20 | 25 |
| - restricted to £3,000 per annumfor cars costing over £12,000, other than those with low emissions | ||
| Features integral to a building and thermal insulation | ||
| - Writing own allowance | 10 | - |
| First year allowances | ||
| Small enterprises | ||
| - qualifying expenditure between 1 April 2006 and 31 March 2008 for enterprises subject to corporation tax | - | 50 |
| qualifying expenditure between 6 April 2006 and 5 April 2008 for other enterprises | - | 50 |
| Medium sized enterprises† | - | 40 |
| All enterprises† | ||
| - designate energy saving plant an machinery‡ |
100 | 100 |
| - expenditure on new low carbon dioxide emission cars | 100 | 100 |
| - expen iture on refuelling equipment for vehicles using natural gas, biogas or hy rogen fuel | 100 | 100 |
| - environmentally beneficial plant and machinery‡ | 100 | 100 |
| - plant use in oil extraction trade | 100 | 100 |
Plant and machinery with expected life 5 years or more |
||
| Writing down allowance* | 10 | 6 |
| - expenditure not over £100,000 per annum | 0 | 25 |
| - expenditure on assets in wellings, shops, showrooms, hotels and offices | 0 | 25 |
| - expenditure over £100,000 per annum | 10 | 6 |
| First year allowances | ||
| - plant use in oil extraction trade | 4 | 24 |
Plant and machinery for overseas leasing |
||
| - writing down allowance* | 10 | 10 |
Industrial and agricultural buildings, hotels, sports pavilions,dredging and highway concessions |
||
| Writing down allowance | 3§ | 4 |
| - being reduced by 1% per annum - no balancing adjustments in respect of balancing events occurring post 20 March 2007 |
||
Enterprise zone buildings |
||
| - Initial allowance | 100 | 100 |
| - Writing down allowance | 5 | 25 |
Flat conversion allowance |
||
| - Initial allowance | 100 | 100 |
| Writing down allowance* | 5 | 25 |
| - on renovation or conversion of space above commercial premises to provide flats to rent | ||
| Research and development | 100 | 100 |
Patent rights and know how |
||
| Writing down allowance* | 5 | 25 |
| - not applicable to acquisitions by companies | ||
Mineral extraction allowances |
||
| - First year allowance oil extraction trade |
100 | 100 |
| - Writing own allowance mineral asset acquisition* | 10 | 10 |
| - Writing own allowance other qualifying expenditure* | 5 | 25 |
Business premises renovation allowances |
||
| - Initial allowance |
100 | 100 |
| - Writing own allowance* | 5 | 25 |
| - Expenditure post 10 April 2007 | ||
Enhanced company tax reliefs |
||
| Research and development | ||
| - Small and mediumsized enterprises (S E)¶ |
175 | 150 |
| - Large companies | 130 | 125 |
| - Additional credits available for certain vaccines research expenditure | ||
| - Loss making S Es can surren er e uction for a payment of 13.71% (16% 2007/2008) of the amount surren ere (subject to con itions) | ||
Remediation of contaminated land |
150 | 150 |
| - Loss making companies can surrender deduction for a payment of 16% of the amount surrenderd (subject to conditions) Intangible assets (including intellectual property and goodwill) | ||
| - Relief for companies for expen iture on creation, acquisition and enhancement of intangible assets | ||
| - Based on accounts amortisation or by election at a fixed rate of 4% per annum | ||
* On reducing balance.
† Restrictions apply.
‡ For 2008/2009 loss making companiescan surren er e uction for a payment of
19% of the amount surren ere . Refun greater of £250,000 or total PAYE+NI
liability.
§ Or 75% of amount previously claime if ifferent.
¶ For 2008/2009 subject to European Commissionapproval an a cap on relief of
€ 7.5 million per project.
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