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Budget 2009 - Business Taxation
Capital Allowances and Reliefs
| 2009/2010 | 2008/2009 | |
|---|---|---|
| % | % | |
Plant and machinery with expected life less than 25 yearsAnnual investment allowance |
||
| - restricted to first £50,000 of most qualifying expenditure | 100 | 100 |
| First year allowance | 40 | - |
| Writing down allowance1 | 20 | 20 |
| - special rules apply to cars acquired pre 1 April 2009 costing over £12,000 and from 1 April 2009 with high emissions (>160g/km) | ||
| Features integral to a building, thermal insulation and long life assets | ||
| - Writing own allowance | 10 | 10 |
| First year allowances | ||
| - designated energy saving plant and machinery1 | 100 | 100 |
| - expenditure on new electric cars and low carbon dioxide emission cars | 100 | 100 |
| - expenditure on refuelling equipment for vehicles using natural gas or hydrogen fuel | 100 | 100 |
| - environmentally beneficial plant and machinery1 | 100 | 100 |
Industrial and agricultural buildings, hotels, sports pavilions, dredging and highway concessions |
||
| Writing down allowance | 22 | 32 |
| - being phased out |
||
| - no balancing adjustments in respect of balancing events occurring post 20 March 2007 | ||
Enterprise zone buildings |
||
| Initial allowance | 100 | 100 |
| Writing down allowance | 25 | 25 |
Flat conversion allowance |
||
| Initial allowance | 100 | 100 |
| Writing down allowance1 | 25 | 25 |
| - In renovation or conversion of space above commercial premises to provide flats to rent | ||
Business premises renovation allowances |
||
| Initial allowance |
100 | 100 |
| Writing own allowance* | 25 | 25 |
Enhanced company tax reliefs |
||
| Research and development | ||
| - Small and medium sized enterprises (SME) |
175 | 1753 |
| - Large companies | 130 | 130 |
| - Additional credits available for certain vaccines research expenditure | ||
| - Loss making SMEs can surrender deduction for a payment of 14% of the amount surrendered (subject to conditions) | ||
| - Capital Expenditure | 100 | 100 |
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 | ||
1 Loss making companies can surrender deduction for a payment of 19% of the amount
surrendered. Maximum refund greater of £250,000 or total PAYE & NI liability.
2 Or 50% (75% 2008/2009) of amount previously claimed if different.
3 150% prior to 1 August 2008.
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