Finance Bill 2012: Capital allowances changes
The government has proposed a number of changes to the capital allowances regime – perhaps the most significant concern new fixtures legislation and the fact that capital allowances will not apply to all 21 Enterprise Zones.
Enterprise Zones
The government confirmed in the Finance Bill 2012 that first year allowances of 100% will apply for companies investing in plant or machinery for use primarily within designated areas within just six of the Enterprise Zones rather than all 21 that are being planned. Allowances will be available from 1 April 2012 to 31 March 2017.
Giles Mooney of TAXtv said it was interesting that only certain Enterprise Zones in assisted areas will qualify for enhanced capital allowances.
“If what they’re saying is that only in certain Enterprise Zones you can have this, then it starts to feel that rather than ‘everybody is in the together’, only some people will get the benefits,” said Mooney. “And before you know it there’s a bloke living outside Wigan called Fred who can claim something, and actually Fred didn’t know it and didn’t want it in the first place.”
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