| Plant and machinery with expected life less than 25 years |
| Writing down allowance *† |
25
|
|
First year allowances
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.
|
Business Advice 