SPEED READ From April 2012 there will be a 2% reduction in the rates of capital allowances, and the 100% Annual Investment Allowance will be reduced to £25,000. This was better than expected news for businesses investing in plant and machinery, who will benefit from the reduction in the corporation tax rate for one year before the capital allowances rates fall. However, the biggest surprise has been that the capital allowances regime has not been simplified, merely the rates reduced.
