In a positive move to encourage capital investment Rishi Sunak announced in the 2022 Spring Statement plans to expand the Capital Allowances legislation, subject to a consultation process, to be formally announced in the autumn budget and to take effect from April 2023.
Amongst the considerations are the following:
- Increase the Annual Investment Allowance permanently to £500,000 from £200,000
- Increase main pool and special rate allowances from 18% and 6% to 20% and 8%
- Introduce a first year allowance for main pool and special rate pool of 40% and 13%
- Introduce an additional first year allowance that equates to over 100% of initial cost
- Introduce potential ability to write off costs of qualifying investment in one go
- Improving the Structures and Buildings Allowances and Freeports allowances