Capital Allowances - December 2007
As with so much of the 2007 budget, significant changes to Capital Allowances were announced to take effect next year. The existing rates of first year allowances (FYA) and writing down allowances (WDA's) continue for the remainder of this tax year.
After 6th April 2008:-
- a new annual investment allowance of £50,000 for plant machinery will be introduced
- allowances on general plant will be reduced from 25% to 20%
- allowances on long life assets will be increased from 6% to 10%
- allowances on industrial and agricultural buildings will be phased out, with no balancing adjustments on disposals
- research and development allowances will be increased
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