| Additional capital
allowances are to be available for
expenditure incurred by a business in
the 12 month period (starting 1 April
2009 for companies and 6 April 2009
for individuals and partnerships).
Most businesses have since April
2008 been able to claim the new Annual
Investment Allowance (AIA) on the
first £50,000 spent on most plant and
machinery. Expenditure on qualifying
plant and machinery not covered by the
AIA will be eligible for a temporary
first year allowance (FYA) of 40%
instead of a 20% writing down
allowance.
The temporary FYA will not apply
for certain expenditure including
integral features, cars, long life
assets and assets for leasing. This
additional allowance will be
attractive to larger or plant
intensive businesses where the AIA is
insufficient, particularly groups of
companies where one AIA has to be
shared between all companies.
Internet link:
HMRC budget note 4 |
