David Barton sets out key tax issues to consider this month.
Key tax considerations this month include the following.
Maximising capital allowances
Changes to the rate of capital allowances announced in FA 2011 take effect for expenditure on qualifying plant and machinery from 1 April 2012. The writing down allowances on the general pool and the special rate pool will be reduced from 20% and 10% pa to 18% and 8% pa respectively. The 100% Annual Investment Allowance (AIA) is also being cut from £100 000 per year to £25 000 from 1 April 2012. For a period straddling the date of change there are special rules to calculate the maximum AIA available. The maximum AIA is the sum of each maximum allowance that would be available if the accounting period were split into two periods; one running up to 31 March...
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David Barton sets out key tax issues to consider this month.
Key tax considerations this month include the following.
Maximising capital allowances
Changes to the rate of capital allowances announced in FA 2011 take effect for expenditure on qualifying plant and machinery from 1 April 2012. The writing down allowances on the general pool and the special rate pool will be reduced from 20% and 10% pa to 18% and 8% pa respectively. The 100% Annual Investment Allowance (AIA) is also being cut from £100 000 per year to £25 000 from 1 April 2012. For a period straddling the date of change there are special rules to calculate the maximum AIA available. The maximum AIA is the sum of each maximum allowance that would be available if the accounting period were split into two periods; one running up to 31 March...
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:
