AS2012: Fourth change in five years for SME capital allowances

THE CHANCELLOR has announced the fourth change in annual investment allowances for SMEs in five years in today’s Autumn Statement.

The change sees the allowance rise tenfold from £25,000 to £250,000 as he bids to stimulate corporate investment among small businesses.

Since April 2008, the rate has changed from £50,000 to £100,000, then last year dropped to £25,000 and now has been increased to £250,000.

It may be seen as another U-turn by George Osborne after he reduced the allowance last year from £100,000 to £25,000.

Reeves tax partner Geraint Jones said: “The government needs to develop a clear and consistent policy in this area so that companies can have clarity and certainty over their future capital investment.”

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