Budget 2008 - Capital Allowances
Although most of the changes on capital allowances have been known about for several months, there are a couple of minor tweaks announced today.
- The 100% first year allowance on cars with very low CO2 emissions will continue for an additional five years, until 31 March 2013, but the qualifying emissions threshold will be reduced from 120g/km to 110g/km driven
- Small balances left on capital allowances pools will be able to be written off where the balance has been reduced to £1,000
In addition, there is confirmation of new rules to allow companies (not unincorporated businesses) to surrender losses in return for a cash repayment from HMRC. This will apply to losses created by claims to 100% first year allowances on certain energy-saving or environmentally-beneficial plant & machinery, It will not be available where those losses could be used in some other way, for example against other taxable income or surrendered as group relief.
