The 2008 Budget introduced a major overhaul of capital allowances, in particular to plant and machinery.

First year allowances
2008 / 09
2007 / 08
All businesses, Plant & Machinery - first £50,000
100%
0%
Small-sized businesses, Plant & Machinery
0%
50%
Medium-sized businesses, Plant & Machinery
0%
40%
.
First year allowances of 100% are available to all sizes of business in respect of specified types of expenditure

Writing-down allowances
2008 / 09
2007 / 08
Integral fixtures
10 % pa *
25 % pa *
Long life plant and machinery
10 % pa *
6 % pa *
Plant and machinery for overseas leasing
-
10 % pa *
Other plant and machinery
20 % pa *
25 % pa * / ***
Industry / agricultural buildings, hotels & sports pavilions
3% pa **
4% pa **

* Reducing balance
** Straight-line. Phased abolition by 2010/11
*** For cars costing over £12,000, the allowance is limited to £3,000 pa, unless low emission.