Introduction
Personal Income Tax
Tax Credits
National Insurance Contributions
Employees
Savings
Capital Gains Tax
Inheritance Tax
Stamp Duty Land Tax
Corporation Tax
Business Tax
Value Added Tax
Other Measures
Tax Tables
National Insurance
| Capital allowances Traders can claim 100% relief in the year of expenditure on plant and machinery up to the Annual Investment Allowance (AIA). Up to 31 March 2010 (companies) or 5 April 2010 (income tax traders), the AIA has been £50,000. From 1 April 2010/6 April 2010, it is increased to £100,000, allowing earlier relief for capital expenditure. There are complicated rules to calculate the amount qualifying for AIA where a trader's accounting period straddles 31 March/5 April. For the year to 31 March 2010 (companies) or 5 April 2010 (income tax traders), first year allowances at 40% have been available on expenditure on some plant and machinery that does not already qualify for the 100% AIA. This has benefited those who spend more than £50,000 a year on plant. The FYA has not been extended into the next year, so expenditure above £100,000 will only qualify for 20% or 10% writing down allowances.
Enhanced capital allowances 100% allowances are available for "green" plant which appears on lists published by the Department of Energy and Climate Change and the Department for Environment, Food and Rural Affairs. Minor changes to the lists will take effect in Summer 2010 and will be published on the Departmental websites. Permanent magnet synchronous motors and biomass-fired warm air heaters will be included, while compact heat exchangers and liquid pressure amplification will be excluded. 100% allowances will also be available for five years from 1 April 2010 (companies) or 6 April 2010 (income tax traders) for expenditure on new and unused electric goods vehicles. | ||||
© Bayar Hughes & Co., 2010.