Compact Services

  2018 Budget - Capital Allowances

Plant and machinery

Period of expenditure from 1.4.2018 1.4.2017
Annual Investment Allowance £200,000 £200,000
Energy/water-efficient technologies 100% 100%
Writing down allowance – general pool 18% 18%
Writing down allowance – special rate pool 8% 8%


  1. Neither capital expenditure nor depreciation is generally allowed as an expense.
  2. The writing down allowance spreads the cost over several years, and is not related to the accounting depreciation.
  3. Special rate pool includes long life assets, plant integral to buildings and thermal insulation.

Motor cars

  CO2 emissions of vehicle (g/km)
Purchased on/after
Allowance 1.4.2018 1.4.2017
100% Up to 50 Up to 75
18% pa (in general pool) Up to 110 Up to 130
8% pa (in special rate pool) Above 110 Above 130


  1. The 100% allowance is only available if the car is acquired new, not second-hand.
  2. If purchased before April 2013, the 8% allowance only applies to cars with CO2 emissions over 160g/km..
  3. Unincorporated businesses: the allowance is reduced for private use of the car.