Capital allowances for
smaller businesses
In Budget 2006, the government
announced that capital allowances in the form
of first year allowances (FYAs) on plant and
machinery acquisitions would be at the rate of
50% for small businesses. The normal rate is
40%. The increased rate will apply for 12 months
from April 2006. The rates apply for unincorporated
businesses from 6 April and for companies from
1 April 2006.
The increase in allowances is supposed to, amongst
other things, be a sweetener for the withdrawal
of the 0% starting rate of corporation tax.
Internet link:
For details of the changes see HMRC budget notice
HMRC
budget notice 2
|
