First year allowances

First year capital allowances for small businesses will be extended to 50% in the year from 1 April for companies and 6 April 2006 for unincorporated businesses.

The government intends to introduce at some point a new range of first year allowances for cars that will depend on their carbon dioxide(CO₂) emissions. This would build on the existing 100% first year allowances for cars with very low emissions.