TaxCorporate TaxCapital allowances legislation to hit business

Capital allowances legislation to hit business

Draft legislation for capital allowances far more pervasive than indicated in Budget

Advisers have warned that draft legislation for changes to capital allowances
will hit businesses harder than they initially thought when the changes were
first announced in the Budget.

KPMG’s head of capital allowances David Woodward said his initial analysis of
the draft legislation shows that ‘integral fixtures’ will now be redefined as
‘integral features’.

Essentially this means that far more plant equipment, such as wiring, will
now only be moved into a new band that will only attract 10% relief as opposed
to the original 20%.

The changes were met with fierce opposition when originally announced,
especially from manufacturers and capital-intensive industries.

The new changes, outlined in the draft legislation, are set to have an even
deeper impact on businesses.

Further reading:

Read the
the draft legislation here

Investment blow to manufacturing

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson