Plant and Machinery:
Power saving items which are not harmful to the environment, vehicles which run electricity and emit low CO2 (up to 110 g/km), natural gas and hydrogen refuelling machinery qualify for a tax deduction of 100% in the year of purchase.
Annual investment allowance (AIA) of 100% is given on the first £50,000 of expenditure provided those items do not already qualify for a 100% deduction by way of another relief.
Non annual investment allowance expenditure can qualify for a standard capital writing down allowance (see below).
Items classified as having a long life can receive and annual allowance of 10%
The standard tax allowable deduction for capital items not belonging to any other category is 20%. The amount of the deduction is limited to £3000 in any one year for cars.
Buildings:
The capital allowance for Industrial and agricultural buildings and hotels is calculated on the original cost of the item and is given at a rate of 3%.
A maximum allowance of 100 can be claimed against expenditure in a designated Enterprise Zone, where sections of commercial buildings are converted to flats and for the substantial repairs of commercial buildings and premises.



