Changes in capital allowances legislation affecting small business
October 3rd, 2008
From 6 April 2008, the capital allowances legislation has been overhauled in a way that simplifies calculations and is beneficial to businesses spending less than £50,000 on capital items per year.
Where a business spends less than £50,000 per annum on business capital items meeting HMRC definitions, it will now be acceptable to offset the full cost against profits arising in that same year. Capital Allowances on costs above this figure will be available but at a very low rate. At the end of the tax year and if close to the spend limit it is therefore worth considering whether it is feasible to defer expense into the following tax year.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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