18 March 2015

Budget 15 - Update

Little changed for capital allowances purposes following George Osborne’s last budget in this parliament.  The Chancellor did, however, confirm that the current generous Annual Investment Allowance - which currently allows up to £500,000 of qualifying capital expenditure to be fully relieved in the year in which expenditure is incurred – will end in 31 December 2015.  This was already on the cards and is due to go back down to the considerably smaller £25,000.  The only thing that the Chancellor did say was that the £25,000 limit would be too low to be useful, but he would not commit to the new limit.

This does make medium term planning for capital investment tricky as it will be unknown whether qualifying expenditure will attract relief at 8/18% or 100%.  To take full advantage of the current generous allowance, investment in qualifying plant & machinery should be planned and made before the end of 2015.

The only other measure confirmed in the budget is the anti-avoidance rules which came into force on 26 February 2015.  These relate to transactions between connected parties or sale & leaseback transactions where the person disposing of the asset does not bring a disposal value into account and the connected person acquiring the asset does not incur capital expenditure.  The restriction means that the person acquiring the asset is treated as having no qualifying expenditure.


<< Previous News Article
Hot Topic for GVA
Next News Article >>
SUMMER BUDGET 2015

 
     
   
 
 


www.rocheassociates.co.uk
Head Office
Saira Puffett
T: 01923 428 746
E: sairapuffett@rocheassociates.co.uk
Southern Office
Paul Munday
T: 01794 899 028
E: paulmunday@rocheassociates.co.uk