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 24 months from 6.4.06
(1.4.06 for companies). 40% otherwise. 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.