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2016 Budget - Capital Allowances |
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Plant and machinery
| Period of expenditure |
From 1.1.2016 |
1.4.2014 to 31.12.15 |
| Annual Investment Allowance |
£200,000 |
£500,000 |
| Energy/water-efficient technologies |
100% |
100% |
| Writing down allowance – general pool |
18% |
18% |
| Writing down allowance – special rate pool |
8% |
8% |
Notes
- Neither capital expenditure nor depreciation is generally allowed as an expense.
- The writing down allowance spreads the cost over several years, and is not related to the accounting depreciation.
- Transitional rules apply where a period of account straddles the change of the Annual Investment Allowance limit.
- Special rate pool includes long life assets, plant integral to buildings and thermal insulation.
Motor cars
| CO2 emissions of vehicle (g/km) |
1.4.2016 |
1.4.2015 |
| Up to 75 |
100% |
100% |
| Up to 130 (in general pool) |
18% pa |
18% pa |
| Above 130 (in special rate pool) |
8% pa |
8% pa |
Notes
- For the 100% allowance the car must be acquired new, not second hand.
- The 8% allowance applies to cars with emissions over 160g/km that were purchased before April 2013.
- Unincorporated businesses: the allowance is reduced for private use of the car.
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