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.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m 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

8m Alia Shoaib, Reporter