Section 25 provides for the reduction of the annual rate of write-off for capital expenditure incurred on hotel buildings to 4 % per annum, while the annual capital allowances for holiday cottages are being abolished. Subject to transitional arrangements, both these amendments apply to construction or refurbishment expenditure incurred on or after budget day. The transitional arrangements provide that these changes will not apply to such capital expenditure incurred by 31 December 2004 if a full and valid planning application is received by the relevant planning authority by the end of May 2003. These new dates should cater for the vast majority of cases that have been brought to my attention since the budget.