The new capital allowances regime
Illustrations of the computations
Finance Acts 2007 and 2008 introduced new rules for capital allowances, applying in most cases from April 2008.
Tax Faculty members will have received TAXline Tax Practice No 21, Capital Allowances: the new rules, in September 2008, which explains the rules in detail.
In these days of computerisation and programmes which do many of the calculations automatically, it is easy to forget how some of the legislation translates into practice. As we have received some enquiries from members about the mechanics of the new computations, we have prepared some illustrations which may be helpful. Our illustrations cover two situations:
- Capital allowances in the opening years of an unincorporated business
- The special rate pool and long-life assets.
They can be found on our website.
31 October 2008
