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
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.