Consultation is under way on changes to capital allowances - part of the package of reforms to business tax announced in this years' budget.
The consultation document, launched by Financial Secretary to the Treasury, Jane Kennedy MP, last week, sets out the package of reforms and seeks feedback from business on three new elements of the capital allowances regime:
- the annual investment allowance;
- the definition of 'integral fixtures' to be assigned to the 10 per cent pool; and
- payable enhanced capital allowances for environmentally beneficial investment.
The budget announced a package of reforms to the business tax regime designed to reform corporation tax rates, reduce the distortive impact of capital allowances, and improve environmental incentives.