Capital expenditure - new rules

For small businesses thinking of buying new equipment and machinery in the near future - STOP! The government has announced a new method of tax relief from 2008 which could benefit small businesses in a big way.

These new rules are expected to come in from April 2008 and businesses can then claim the whole cost of capital expenditure (well, upto £50,000) in year one against their profits whereas currently it is spread over a number of years. This will give you a significnat cash flow benefit if you wait until 2008 to buy your new laptop or lathe.

2 comments ↓

#1 Mark on 09.19.07 at 5:05 pm

Would this apply to company cars?

#2 Administrator on 09.19.07 at 8:10 pm

Unfortunately, not. Cars are one of the few exceptions but it does cover all plant and machinery and computer equipment. Please note all we have is general guidance notes at this time - detailed legislation should be available nearer the date of introduction.

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