Capital Allowances

Capital Allowances

Summer Budget 2015 - Business Tax Changes

July 14th 2015

Business Tax

George Osborne has presented his first Budget without regard for coalition partners. The measures he has introduced recognise the need to incentivise individuals and businesses, with the promise to balance the nation’s books and reduce debt. We have summarised below some of the more impactful business tax changes.

Save money, make money - opportunities from green energy

March 6th 2015

With high energy prices and a growing need for businesses to reduce their carbon footprint, many UK businesses are considering renewable energy as part of a diversification project and as a source of additional revenue. Benefits for commercial businesses and landowners can include:

Capital Allowances

February 18th 2015

Annual Investment Allowances (AIAs) allow the whole cost of machinery and vehicles (other than cars) to be written off, for tax purposes, in the year of purchase. There is an annual ceiling on the maximum qualifying expenditure, which is currently £500,000, but which is scheduled to fall by 95%, to just £25,000, on 1 January 2016.

Discontinuance of trade and the Annual Investment Allowance (AIA)

July 25th 2014

In a recently decided tax case a self-employed air conditioning engineer, David Keyl, was denied a claim for AIA. He had purchased a van in July 2008 and on 31 March 2009 (the end of his trading year) he transferred his sole trader business to a limited company.

Unfortunately, the legislation setting up the AIA includes a provision that relief will be denied in the year in which a trade discontinues.