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.
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Would this apply to company cars?
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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