26 July 2007
Business tax reform: capital allowances changes
Budget 2007 announced a major package of reforms to the business tax system in the UK. These reforms enhance international competitiveness, encourage investment, promote innovation and ensure fairness across the tax system in line with the key principles that have underpinned business tax policy-making since 1997.
This document sets out the package in more technical detail and provides guidance on the arrangements for the transition to the reformed structure. The document specifically seeks views from business on three new elements of the capital allowances system: the annual investment allowance, the definition of 'integral fixtures' and high-level proposals for 'payable' enhanced capital allowances.
The consultation on these issues will continue until 19 October. Draft legislation and further technical guidance for further consultation will follow, later in the year.
Business tax reform: capital allowances changes is available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
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