Major changes to Capital Allowances
Date of Issue: 7th February 2008
In outline the proposed changes affect capital allowances for plant and machinery, industrial buildings and agricultural buildings. In particular:
- there are changes to the rate of Writing Down Allowance (WDA) for plant and machinery, disadvantaging most companies, and
- the introduction of a new Annual Investment Allowance (AIA) for the first £50k of expenditure on plant and machinery
- WDA's on industrial buildings (including hotels) and agricultural buildings will be gradually phased out, with final regimes by April 2011. In preparation for this abolition most balancing adjustments are withdrawn from March 2007
In order to mitigate the effects of these changes, we recommend consideration be given to:
- the timing of all planned expenditure either pre or post April 2008
- ensuring that all capital allowances are up to date by April 2008, and that all possible items are included in the plant and machinery pool
- the timing of any sale of Industrial or Agricultural buildings
These changes are likely to affect most businesses and we would suggest you contact your business advisors to discuss your own circumstances in more detail.
For further details, please contact:
Bridget Charlton, Marketing Manager
Email: bridgetc@batesweston.co.uk
or telephone 01332 365855
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