SUMMER BUDGET 2015
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.
- 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)