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The impact of capital allowances rules

Anita Monteith considers the effects of the capital allowances rules. She covers topics including the Budget 2018 proposals, new structures and buildings allowance, reduced rate of special writing-down allowance and the annual investment allowance.

Capital allowances rulesThere have been numerous occasions during my career in tax policy when capital allowances have been examined for their breadth, magnitude or complexity. They seem to be a favourite topic for academic research papers, lobbyists and successive chancellors seeking a big-ticket win for business. The price tag for granting tax relief for fixed assets is significant, so whenever a change is announced in the Budget, it is worth taking a look in the Red Book at the costs attached.

The 29 October 2018 Budget announcement was a case in point, but more of that later.