In Philip Hammond’s second Autumn Budget, there were some welcome additions and some notable changes in respect of capital allowances. These are summarised below.
In today’s Budget, George Osborne’s 8th, there were just a few changes to capital allowances.
However I have also included brief details of other changes that may impact you.
Business Premises Renovation Allowance (BPRA)
This 100% allowance for converting vacant properties in designated disadvantaged areas will end, as planned, from 1 April 2017 (Corporation Tax) and 5 April 2017 (Income Tax).
In today’s first Conservative Budget for almost 20 years, there were a few changes impacting the capital allowances regime.
Annual Investment Allowance (AIA)
The 100% AIA is currently £500,000. Rather than fall to £25,00- it will become £200,000 on 1 January 2016, with the commitment to this being a permanent level.
As with previous changes to the AIA, there will be transitional rules for a business whose year end is not 31 December 2015.
In a generally positive Budget, a number of changes were announced as follows:
Annual Investment Allowance (AIA)
The 100% AIA was due to fall to £25,000 on 1 January 2015.
It has now been increased from £250,000 to £500,000, covering the period from April 2014 to31 December 2015. There are transitional provisions, the impact of which will depend on your chargeable period.
