Richard Carson reviews the new draft anti-avoidance regime for plant and machinery allowances and discovers that taxpayer concerns expressed during consultation are not entirely allayed.
As expected the draft Finance Bill clauses published on 6 December 2011 included significant modifications to the existing anti-avoidance regime for plant and machinery allowances.
The proposals to reform this part of the capital allowances code which is included in CAA 2001 Pt 2 Ch 17 typify in many ways the government’s struggle to create effective statutory rules that serve to discourage abusive or otherwise unacceptable avoidance schemes without at the same time causing uncertainty or unfairness for the vast majority of businesses – including those who choose to operate in what the...
