A capital allowance available to a UK trader. Any additions to plant and machinery are added to the written-down value of assets acquired in previous years and the writing-down allowance is calculated as 25% of the total. For cars the allowance is restricted to £3000, for vehicles whose initial cost is in excess of £12,000. For industrial buildings the allowance is calculated at 3% of the initial cost, on the straight-line method. For certain long-life assets it is calculated at 10% in the same way. See also Annual Investment Allowance.
Subjects: Financial Institutions and Services — Accounting.