The Annual Investment Allowance (AIA).
1. The AIA is an annual 100% allowance for the first £50,000 of investment in plant & machinery (excluding cars) available to all businesses, regardless of size or structure, for expenditure incurred post April 2008.
2. The AIA will operate alongside other forms of allowances. Businesses will be able to use as much of the AIA as is necessary and can allocate the AIA in whichever order is the most beneficial to them.
3. The AIA will be available as a single allowance per group of companies but can be allocated freely between group companies.
4. The AIA will replace the first year allowances previously available to SME's.

General plant & machinery pool.
1. The rate of relief was reduced from 25% to 20%, with effect from 1 April 2008.
2. A hybrid rate will be applied in the transitional period.

New £1,000 tax deduction.
1. For accounting periods starting on or after 1 April 2008 (6 April for unincorporated businesses), you will now be able to write off any balance on the pool if it's £1,000 or less.

Integral features.
1. A new "special rate" pool was introduced for integral features in buildings (rather than those items which are regarded as part of the building itself) which will attract a rate of 10% (reduced from 25%), for expenditure incurred after 1 April 2008, for companies in the charge to corporation tax. Assets in this category will include:-
a) electrical systems (including lighting);
b) cold water systems;
c) space or water heating systems, powered systems of ventilation, air cooling or air purification;
d) lifts,escalators and moving walkways;
e) external solar shading and active facades.

2 Assets already in the general pool that can be described as integral features, will not need to be reclassified and will continue to receive the higher rate of relief (20%).

Enhanced Capital Allowances.
1. ECA's are available currently at 100% for expenditure incurred on qualifying energy efficient technologies.
2. A payable ECA tax credit is to be introduced for companies only whereby current year losses can be surrendered for a cash payment of 19% of the loss surrendered.
3. The amount of the loss available for surrender is equal to the amount of the qualifying ECA expenditure, subject to a cap of £250,000, or the companies NI & PAYE liability. Effectively this equates to approximately £1.3m of loss available for surrender.
4. The credit will be clawed back if the asset is sold within 4 years.

Long life assets ( LLA).
1. The rate of relief will be increased from 6% to 10% for qualifying expenditure incurred post April 2008.
2. Expenditure for long life assets already in the pool before the commencement date, will be subject to a hybrid rate calculation, in the transitional period.