Capital Allowances

	Writing Down Allowance
Plant and Machinery*	25%#(reducing balance)
Motor Cars**	25% (reducing balance) - £3,000 max
Industrial and Agricultural Buildings and Hotels	4% (straight line)

*For small businesses: first year allowances (FYAs) of 50% for 12 months from 6.4.04 (1.4.04 for companies).
FYAs of 40% from 6.4.05 (1.4.05 for companies).
For medium-sized businesses: FYAs of 40%.
For all businesses: 100% FYAs on expenditure on energy saving plant and machinery.
**100% FYAs on new cars with CO₂ emissions not exceeding 120 gm/km until 31.3.08.
#6% on certain long life assets.