In Philip Hammond’s first (and last) Spring Budget, as we move to Autumn Budgets, I could find nothing new in relation to capital allowances.


However as previously announced:


Annual Investment Allowance (AIA) - The 100% AIA remains at £200,000.


Corporation Tax (CT) Rates - CT rates will fall to 19% from 1 April 2017. 


Business Premises Renovation Allowance (BPRA) - The 100% allowance for converting vacant properties in designated disadvantaged areas will end from 1 April 2017 (Corporation Tax) and 5 April 2017 (Income Tax).


In a wider tax context, the previously announced restriction on CT losses (applying to large companies with profits in excess of £5m) and CT corporate interest expense (again large business, with £2m net of UK interest expense) are effective from 1 April 2017. 


This means that claiming capital allowances may become more relevant to some companies.


Other potentially relevant consultations:


Plant and Machinery Leasing


  • There will be a further consultation in Summer 2017, but “the government intends to maintain the current system of lease taxation by making legislative changes which enable the rules to continue to work as intended”.


Non Resident Companies


  • The government will consult on the case and options for bringing non-UK resident companies, who are currently chargeable to Income Tax on their UK taxable income, within the scope of Corporation Tax.

  • These companies would then be subject to the rules which apply generally for the purposes of Corporation Tax, including the limitation to corporate interest expense deductibility and loss relief rules (as noted above).

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