The Summer Budget on 8 July 2015 announced a number of capital allowances and property tax changes;

Annual Investment Allowance

  • The government will increase the permanent level of the AIA from £25,000 to £200,000 for all qualifying investment in plant and machinery made on or after 1 January 2016.

Enterprise Zones

  • There will be a bidding round for new Enterprise Zones in this parliament.


Corporation tax rates

  • The corporation tax rate will reduce from 20% to 19% in 2017 and reduce to18% in 2020.

Reform of the Wear and Tear Allowance

  • From April 2016, the Wear and Tear Allowance will be replaced with a new relief that allows all residential landlords to deduct the actual costs of replacing furnishings.  There will be a technical consultation.
  • Capital allowances will continue to be available for furnished holiday lets.


Restriction of corporation tax relief for business goodwill amortisation

  •  There will be a restriction to the corporation tax relief for a company for the cost of purchased ‘goodwill’.  This will affect all acquisitions and disposals on or after 8 July 2015. (Summer  Finance Bill 2015) (24)

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