Capital Allowances

Every year I think that the Budget can’t get any more farcical and then the next year rolls around and the government ups its game. This year was particularly pantomime-y - presumably because it is so late and we are in the festive period. The constant braying and shouting drives me mad - although with the OBR “accidentally” leaking the Budget report just before the Chancellor stood up meant that I probably could have skipped it this year. At least this time we didn’t have to listen to Jeremy Hunt’s “dad” jokes. 

I'm not going to say this will be the final one of the year, because you know what will happen is that Rishi Sunak will pop out of nowhere and announce something hideous like furlough v12.4 and there is not enough wine in Yorkshire for me to deal with that. So, this may, or may not, be the last you hear from me... for this year (don't get too excited)

So, let's keep it brief: 

1. Christmas tax relief

There are a few things to remember at Christmas: 

What are Capital Allowances?

Capital Allowances allow a business to offset the cost of it’s newly acquired plant, machinery and equipment against its taxable profits for the year – ultimately reducing the tax payable in the process.

If your company is located in one of the 24 or so enterprise zones, there are significant Government incentives to encourage investment. HMRC have added maps to their online guidance, showing sites within enterprise zones that offer 100% first-year allowances for companies investing in new plant or machinery until 31 March 2020.

According to the Government website, businesses basing themselves on Enterprise Zones can access a number of benefits: