Review of the Budget by Christine Oates and Stephen Heath
In the lead up to the Emergency Budget there was much supposition surrounding both the likely simplification of the existing capital allowances regime and a significant reduction to the existing rates of relief.
When factoring in the much discussed reduction to the headline rates of corporate tax to attract business to the UK which previously capital allowances had fully funded it looked like those businesses investing in capital assets would suffer yet again.
So what happened?
The key changes announced were less severe than many had feared:
The phased reduction in the main rate of corporate tax from 28% to 24% - 1% per annum from April 2011.
The rate of writing down allowance (WDA) for plant and machinery allowances (PMAs) will fall from 20% to 18% from April 2012.
The rate of WDA for...
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Review of the Budget by Christine Oates and Stephen Heath
In the lead up to the Emergency Budget there was much supposition surrounding both the likely simplification of the existing capital allowances regime and a significant reduction to the existing rates of relief.
When factoring in the much discussed reduction to the headline rates of corporate tax to attract business to the UK which previously capital allowances had fully funded it looked like those businesses investing in capital assets would suffer yet again.
So what happened?
The key changes announced were less severe than many had feared:
The phased reduction in the main rate of corporate tax from 28% to 24% - 1% per annum from April 2011.
The rate of writing down allowance (WDA) for plant and machinery allowances (PMAs) will fall from 20% to 18% from April 2012.
The rate of WDA for...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
