In the Spring Budget the government announced the largest ever Capital Allowances tax incentives to be introduced for companies investing in their properties and businesses, forecasted to save £8bn a year. The changes are summarised as follows:
Permanent Tax Relief
- Confirmation of £1million annual investment allowance
From 1 April 2023 to 31 March 2026
- ‘Plant and Machinery’ on new and unused assets to attract 100% relief
- ‘Special Rate Pool’ on new and and unused assets to attract 50% first year relief
For 5 Year Period (Dates to be confirmed)
- Enhanced Capital Allowances in new Investment Zones
- Enhanced Structures and Buildings Allowances in new Investment Zones
With the corporation tax increasing by 30% it has never been as important to not only maximise the Capital Allowances but to allocate to the higher writing down allowance.