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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