TaxCorporate TaxIT tax allowance to expire soon

IT tax allowance to expire soon

Small businesses must buy new computer and communications equipment now if they are to benefit from the 100% tax allowance available on the technology.

George Bull, of Baker Tilly, is reported saying that a typical small business paying 19% corporation tax ‘enjoys a £19 allowance against its tax liability for every £100 of technology capital expenditure.’

But the credit runs out at the end of March, so from 1 April, the allowance would drop to £4.75 in the first year for every £100 of expenditure.

Gordon Brown might use his Budget speech to reinstate the allowance, however, as an antidote to some of the bad news he is bound to release.

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