100% capital allowances for small businesses investing in information technology systems is soon to end, just as thousands more businesses become eligible to claim it.
Expenditure on such items as computers, internet-enabled telephones and scanners can attract 100% capital allowances in the current year's accounts.
There is some concern that the valuable allowance may be reduced or scrapped in the Budget on 17 March. It was due to end anyway on 31 March 2004, having been extended from 31 March 2003 by FA 2003.
The relief means small companies paying 19% corporation tax and buying 10,000-worth of computer kit, will save 1,900 in tax at the end of the year. The same tax break also applie...